Eimskipafélag Íslands hf. - Financial Statement Release

EIMSKIP: EBITDA growth was 66.5% in first quarter 2016

Forecast for 2016 raised to EUR 49 to 53 million


  -- Revenue EUR 113.3 million, up by EUR 0.6 million from Q1 2015
  -- EBITDA EUR 9.6 million compared to EUR 5.8 million, up by 66.5% from Q1
     2015
  -- Net earnings EUR 1.8 million compared to EUR 1.5 million, up by 21.1% from
     Q1 2015
  -- Transported volume in North Atlantic liner services up by 8.1% from Q1 2015
  -- Transported volume in forwarding services up by 5.9% from Q1 2015
  -- Equity ratio 59.9% and net debt EUR 33.4 million at the end of March
  -- EBITDA forecast for the year 2016 has been raised to the range of EUR 49 to
     53 million

GYLFI SIGFÚSSON, PRESIDENT AND CEO

“Eimskip’s EBITDA for the first quarter 2016 was EUR 9.6 million, up 66.5%
compared to the same period last year. Revenue for the quarter amounted to EUR
113.3 million, up by 0.5%, but lower cargo rates in international forwarding
affected the revenue growth. The company took action in recent months to change
its sailing system in order to be able to operate more efficiently during the
winter season. Due to the streamlining of operations and increased cost control
measures, operating expenses excluding salaries were down in the quarter. Total
operating expenses including salaries were down by 3.0%, an excellent
performance despite materially increased cost related to Icelandic wage
agreements. Net earnings came to EUR 1.8 million and grew by 21.1% from the
first quarter 2015, despite a negative turnaround of currency exchange
difference of EUR 3.7 million. Cash flow from operating activities amounted to
EUR 12.7 million compared to EUR 3.1 million in the same period last year and
the cash position at the end of March stood at EUR 47.3 million. This is the
company’s best first quarter in terms of revenue, EBITDA, EBIT and cash flow
since 2009, but the first quarter has historically been Eimskip’s weakest
quarter of the year. 

Transported volume in the North Atlantic liner services grew by 8.1% from the
first quarter 2015. There was good growth in transport related to Iceland, the
Faroe Islands and Norway and especially good growth in Norway compared to their
difficult first quarter last year. From now on we will be presenting changes in
transported volume in the company’s total forwarding services for both reefer
and dry cargo forwarding, which grew by 5.9% from the same period last year. 

Eimskip and Royal Arctic Line, the national carrier of Greenland, have signed a
letter of intent to connect Greenland with Eimskip’s international sailing
system. The companies plan to invest in and operate three approximately 2,000
TEU container vessels designed and built for the special conditions in the
North Atlantic and they will connect the transport systems of Greenland and
Iceland with Scandinavia, Europe and North America. The new vessels will be
more fuel efficient and better for the environment. This will be a strategic
relationship that will create cost efficiency, increase capacity and is a
future step for Eimskip’s fleet renewal program. The estimated time of
designing and building the vessels is two to three years. 

Eimskip continues to evaluate strategic acquisitions and growth investment
opportunities. The company is in the position to gain from its strong financial
position as the ongoing consolidation in the industry continues. We are in
advanced acquisition process and anticipate closing transactions in the third
quarter. 

The second quarter looks favorable compared to last year. The EBITDA forecast
for the year 2016 has been raised and is now in the range of EUR 49 to 53
million, from the range of EUR 46 to 50 million as presented last February.
Estimated EBITDA related to new acquisitions and strategic investments and cost
related to the transactions is not included in the current EBITDA forecast for
the year.” 

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

Priedai:

Eimskip - Financial Statements Q1 2016.pdf

Eimskip - First Quarter 2016 Financial Results.pdf