Published: 2016-11-17 19:45:31 CET
Eimskipafélag Íslands hf.
Financial Statement Release

Eimskip: Strong performance continues in third quarter

Normalized EBITDA growth 23.3%

  • Revenue EUR 134.1 million, up by EUR 4.3 million or 3.4% from Q3 2015
  • Revenue up by EUR 6.3 million or 4.9% when excluding the EUR 2.0 million gain on disposal of a vessel under construction included in Q3 2015 revenue
  • EBITDA EUR 17.8 million, up by EUR 1.4 million or 8.6% from Q3 2015
  • Normalized EBITDA up EUR 3.4 million or 23.3%, excluding the EUR 2.0 million gain on disposal
  • Net earnings EUR 9.4 million compared to EUR 8.5 million, up by 10.7% from Q3 2015
  • Equity ratio 63.3% and net debt EUR 34.8 million at the end of September
  • EBITDA forecast for the year 2016 has been changed to the range of EUR 52 to 55 million



“Revenue for the third quarter amounted to EUR 134.1 million, up by 3.4%. EBITDA for the quarter was EUR 17.8 million, up by 23.3% compared to last year’s normalized EBITDA of EUR 14.4 million when taking into account a EUR 2.0 million gain on disposal of a vessel under construction that was included in the third quarter’s 2015 revenue. Transported volume in the North Atlantic liner services grew by 6.8% compared to the third quarter last year and revenue was up by EUR 5.7 million or 6.1%. There was good growth in transported volume related to Iceland, the Faroe Islands and Norway. Volume growth in the company’s forwarding services was 4.7% in the quarter while the forwarding revenue was down by EUR 1.4 million or 3.8%, affected by lower international freight rates and lower volumes from China that are slowly recovering. Net earnings amounted to EUR 9.4 million, up 10.7%. The company continues to deliver good results and this is our best third quarter in terms of revenue, EBITDA, EBIT and net earnings since 2009.

The company’s revenue for the first nine months amounted to EUR 373.4 million and was up by 1.2%. Liner revenue increased by EUR 15.2 million or 5.8% and forwarding revenue was down by EUR 10.8 million or 10.2% for reasons previously stated. EBITDA for the period amounted to EUR 43.6 million, up EUR 8.1 million or 22.9% from last year, and as compared to normalized 2015 EBITDA it grew by 30.1%. Net financial expense amounted to EUR 1.0 million compared to nominal net financial income for the first nine months last year, still resulting in EUR 20.0 million net earnings, up by 28.8%. Transported volume in the North Atlantic liner services grew by 8.0% compared to the first nine months last year and the forwarding volumes grew by 3.0%.

After 90 years of cooperation with the port of Hamburg in Germany, we announced in October that the company’s vessels on the Blue Line will stop calling Hamburg and start calling EUROGATE Container Terminal Bremerhaven as of 6 December. The change creates various opportunities and gives our customers in Iceland, the Faroe Islands and Norway better connections to other markets and the transit time shortens. The container port of Bremerhaven is the fourth largest in Europe and is a major transshipment hub to the rest of the world. Bremerhaven is also the heart of the German fish industry.

In October, Eimskip further strengthened its position in worldwide reefer logistics services by acquiring 90% of the forwarding company Extraco in Rotterdam. The company’s annual turnover amounts to approximately EUR 19 million. Extraco, which was founded in 1991, will be relocated into Eimskip’s office in Rotterdam to achieve synergies and to be a part of Eimskip’s reefer logistics center with other Eimskip’s entities there.

In the beginning of November, Eimskip signed an agreement to acquire the Norwegian shipping and logistics company Nor Lines. The estimated annual turnover of Nor Lines amounts to approximately EUR 110 million and the company employs about 200 people. The company is currently operating an extensive logistics network in Norway, on sea and land. Subject to the approval of the Norwegian Competition Authority, it is anticipated that the transactions will close during the first quarter 2017.

In May, Eimskip and Royal Arctic Line, the national carrier of Greenland, signed a letter of intent to form and evaluate a potential cooperation regarding building of three container vessels and sharing capacity. With the potential cooperation, Greenland will be connected with international sailing systems. The work has been progressing well in recent weeks and months and the goal is to conclude an agreement for a Joint Venture in December.

It remains our intention to grow organically and through strategic accretive acquisitions to increase shareholder value. We continue to evaluate additional acquisitions and vessel investments on an ongoing basis and are currently working on a few options. We will not be issuing new equity to conclude potential investments, but will be issuing additional debt for the investments and by that changing the leverage of the company to more normal levels, still maintaining a strong balance sheet.

The outlook of the operations in the fourth quarter is good, the month of October is according to our expectations and volume in the company’s systems for the first two weeks of November is also in line with our expectations. Uncertainty remains regarding wage agreements with a part of the Icelandic crew members on Eimskip’s vessels. Based on the above, our EBITDA forecast will be changed from being in the range of EUR 49 to 53 million to EBITDA in the range of EUR 52 to 55 million.”



  • Gylfi Sigfússon, President and CEO, tel.: +354 525 7202
  • Hilmar Pétur Valgardsson, CFO,  tel.: +354 525 7202
  • Erna Eiríksdóttir, Senior Manager of Investor Relations, tel.: +354 825 7220, email:

Eimskip - Third Quarter 2016 Financial Results.pdf
Eimskip - Financial Statements Q3 2016.pdf