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EIM: EBITDA result for 2019 below expectations

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According to preliminary results for the fourth quarter of 2019, EBITDA for the year 2019 will be below management expectations. Estimated EBITDA is in the range EUR 49 - 50 million compared to the Company’s updated EBITDA guidance for the year 2019 of EUR 52-55 million.

Main reasons for lower operational results are lower volumes in the Company’s container liner system which was 10% lower in Q4 compared to same period in 2018 which can mainly be attributed to the last weeks of the quarter. Lower volume is mainly explained by lower import to Iceland than expected, less catch around Iceland which lead to lower export volume and less activity in Iceland domestic trucking. Landed catch according to the Directorate of Fisheries in Iceland for October and November was 19% and 29% lower respectively compared to same months in 2018. This had negative effect on export in November and December.

In addition, one-off expenses related to the closing of Eimskip’s office in Belgium was higher than expected and furthermore moving stevedoring services in Rotterdam earlier than expected resulted in considerable cost. The terminal transition was scheduled to take place in Q1 2020 but due to close down and strikes at prior terminal the move was expedited.

The Company has been going through various cost and streamlining measures in the past year and e.g. made changes to its sailing system with the aim of responding to lower level in import volumes to Iceland. These measures are delivering improved results but did not offset the fluctuations in volume in the last weeks of 2019.

The EBITDA numbers above do not include effects of the accounting standard IFRS16.

Eimskip is still working on the Q4 and 2019 financial closing and the EBITDA result is therefore subject to change during that process.

Financial results for Q4 and the year 2019 will be published on February 27th.

For further information please contact Edda Rut Björnsdóttir, head of Marketing & Communication via phone (+354) 825-3399 or investors@eimskip.is