Eimskipafélag Íslands hf. - Financial Statement Release

Eimskip’s net earnings in first quarter 2013 was EUR 2.5 million

  -- Operating revenue increased by 12.4% from 2012 and was EUR 105.3 million
  -- Operating profit (EBITDA) was EUR 7.2 million
  -- Equity ratio was 65.8% at the end of March
  -- Transported volume of liner services in the North Atlantic increased by
     0.3% from 2012
  -- Transported volume of reefer forwarding services increased by 13.1% from
     2012

Gylfi Sigfússon, President and CEO

“EBITDA of the first quarter of 2013 was EUR 7.2 million and increased by 6.5%
from previous year. Net earnings amounted to EUR 2.5 million compared to EUR
0.6 million in first quarter last year. 

Transported volume in the company's liner services in the North Atlantic
increased slightly, or by 0.3% from the same period 2012. The company has grown
its transported volume to and from the Faroe Islands and between Europe and
North America, which has offset softness in volumes into Iceland and in Norway.
Transported volume in the company's reefer forwarding services increased by
13.1% compared to last year driven by growth in Intra Asia trade. 

Early in March, Eimskip introduced substantial changes in the company's sailing
schedule by adding one vessel to the liner system, increasing system capacity
by 7.7%. The changes create new opportunities for Eimskip's customers and for
new source of revenue for the company. The main changes are weekly coastal
services, new port calls in the Faroe Islands, Scotland, Poland and in USA. In
connection with the changes of the sailing schedule, the company opened an
office in Gdynia in Poland early in March and Eimskip's first port call at
Swinoujscie in Poland was in April. Our sailing schedule now allows Eimskip to
enter the Baltic market and better serve many of the company's customers who
export fish products from Iceland, the Faroe Islands and Norway. 

Building volume in a changed sailing schedule will take time, but customers
have been positive regarding the changes and we have already signed new
contracts with estimated total worth of EUR 3 to 4 million in annual sea
freight revenues for our transportation system. The changed sailing schedule
has also benefitted our customers and the company through improved efficiency
and by reducing costs and traffic on Icelandic roads. To give an example, our
trucks have driven 150 thousand kilometers less during the first two months of
the coastal services than before. 

In April, Eimskip negotiated a reduction of the purchase price of the two new
vessels being built in China by about 20%. The reduction is USD 10 million in
total for the two vessels. Originally the vessels were expected to be delivered
this year, but Eimskip and the shipyard made an agreement on delivering the
vessels in the first half of 2014. The change of the vessels' delivery time
will not affect service to the company's customers. 

The company continues to focus on strengthening and expanding its operations in
the North Atlantic regarding projects related to heavy industry, oil and
mining, as well as terminal services and other related services. The company is
also evaluating potential opportunities related to future sailings in the
Arctic.” 

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 - First quarter 2013 financial results.pdf

Eimskip - Financial Statements Q1 2013.pdf