Eimskipafélag Íslands hf. - Financial Statement Release

Eimskip announces 2013 results

  -- Operating revenue EUR 433.8 million, up by 2.4% from 2012
  -- Operating profit, EBITDA, EUR 37.1 million, down by 9.1% from adjusted
     EBITDA in 2012
  -- Equity ratio was 65.5% at the end of the year
  -- Transported volume in North Atlantic liner services up by 3.4% from 2012
  -- Transported volume in reefer forwarding services up by 7.9% from 2012
  -- The Board proposes a dividend payment representing 30.0% of net earnings
     for the year
  -- Forecasted EBITDA for the year 2014 in the range of EUR 37 to 41 million

Gylfi Sigfússon, President and CEO

“We believe that overall the results of 2013 reflect the tough economic
environment in Iceland. Adverse weather conditions in the North Atlantic and
mechanical issues with a few of our vessels in the fourth quarter put our
sailing schedule out of order and negatively impacted our results. For the full
year, revenues amounted to EUR 433.8 million and grew by 2.4% from 2012. EBITDA
amounted to EUR 37.1 million which equals 9.1% decrease from previous year,
taking into account one-off items in 2012. Performance of our international
operations did show good results, but our operations in Iceland were below our
expectations. 

Transported volume in our North Atlantic liner services grew by 3.4% from 2012.
Transported volume to and from Iceland remained stable but there was growth in
volume related to the Faroe Islands and Norway, which are a part of our home
market in the North Atlantic, and volume between Europe and North America grew.
Volume in the company's reefer forwarding services increased by 7.9% compared
to previous year, mainly due to increased Intra Asian transport and transport
from Europe to Asia. 

Eimskip introduced substantial changes in its sailing schedule in March 2013
which increased the capacity of the system and in February 2014 we decided to
make some further adjustments partly due to negative effect of bad weather
conditions in recent months. A new sailing route, the Gray line, has been added
between the Faroe Islands and Scotland in order to increase the flexibility of
the sailing schedule and increase service reliability. It is important to be
able to respond to requirements of customers with an efficient and flexible
system. 

Eimskip has negotiated a further delay of delivery of the two container vessels
which are currently being built in China. It is expected that the first vessel
will be in service as from the middle of this year but there is still
uncertainty regarding the delivery of the second vessel which will presumably
not be delivered until late this year. Related to the delay, Eimskip has
negotiated a USD 10.8 million reduction of the vessels' total purchase price.
The delay of delivery will neither affect the sailing schedule nor services to
Eimskip's customers. It will however extend chartering of vessels since the new
vessels are expected to replace two vessels which are currently chartered by
the company. 

The company is seeking opportunities to grow, especially outside Iceland and is
working on various projects in relation to strategic acquisitions in line with
the company's vision of being a leading transportation company in the North
Atlantic. As part of this strategy Eimskip is in correspondence with the
Central Bank of Iceland, the Oslo Stock Exchange and other foreign stock
exchanges for potential dual listing of the company's shares. 

The Board of Directors proposes a dividend payment to shareholders in 2014 in
the amount of ISK 2.60 per share. The total dividend payment is ISK 504.6
million, or EUR 3.2 million, which represents 30.0% of net earnings for the
year 2013. 

Our EBITDA forecast for the year 2014 is in the range of EUR 37 to 41 million.”

Further information

  -- 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: investors@eimskip.is

Attachments:

Eimskip - Consolidated Financial Statements 2013.pdf

Eimskip - Financial Results 2013.pdf