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Performance in first 6M in line with expectations

Highlights of Q2 2019 results

  • Revenue amounted to EUR 167.5 million, a decrease of EUR 5.1 million or 3.0% when compared with the same quarter in 2018
    • Transported volume in liner services decreased by 4.8% affected by lower level of import to Iceland and a decline in export at the end of the quarter.
    • Volume in forwarding services decreased by 14.0% however profitability was in line with same period last year due to improved margins.
  • Salary cost and related expenses decreased by 5.2% between years, whereas other operating expenses decreased by 1.2% adjusted for IFRS 16.
  • EBITDA amounted to EUR 18.5 million in the second quarter of 2019 or EUR 13.2 million (excluding IFRS 16) compared to EUR 14.9 million in the same quarter last year, a decrease of 11.8%.
    • EBITDA in the quarter was slightly below expectations which can mainly be attributed to lower volume in container liner system.  
  • Net earnings for the Q2 2019 amounted to EUR 2.7 million, compared to 4.6 million in the same quarter of 2018.
  • Net cash from operating activities (IFRS 16 adjusted) increased substantially and amounted to EUR 17.4 million compared to EUR 8.0 million in the same quarter of 2018.

Highlights of 6M 2019 results

  • Revenue amounted to EUR 331.5 million, an increase of EUR 3.3 million or 1.0% when compared with the same period in 2018.
  • EBITDA amounted to EUR 34.0 million or EUR 23.8 million (excluding IFRS 16) compared to EUR 22.2 million in the same period last year, an increase of 7.2%.
  • Net earnings amounted to EUR 0.1 million, compared to 3.0 million in the same period of 2018
    • A negative one-off tax expense in the amount of EUR 3.4 million negatively affected the results. Earnings would otherwise have been EUR 3.5 million.
  • Total CAPEX for the period amounted to EUR 21.7 million compared to EUR 24.2 million in 6M 2018. New investments amounted to EUR 14.7 million mostly related to new vessel buildings, Gantry Crane and associated terminal area construction.
  • Net cash from operating activities (IFRS 16 adjusted) increased substantially and amounted to EUR 28.5 million compared to EUR 10.0 million in the same period of 2018.
  • Total equity amounted to EUR 232.9 million with an equity ratio of 44.2%. Equity ratio was 47.3% (excluding the effect of IFRS 16), compared to 49.1% at year-end 2018.
    • Dividend amounting EUR 4.7 million was paid in Q2.
    • A share buy-back program was initiated in Q2 and the Company purchased treasury shares amounting EUR 1.9 million of market value in the period.
  • Leverage ratio was 2.80 in the end of second quarter 2019 or 2.68 (excluding IFRS 16), compared to 2.80 at the end of 2018, a positive development between periods.
  • EBITDA guidance for 2019 remains in the range of EUR 51-57 million.


“Eimskips’ performance was in line with expectations for the first six months of 2019. However, revenues and EBITDA in Q2 were slightly below expectations, primarily as a result of lower container liner volume to and from Iceland and the Faroe’s.  

Our diversified International operation saw a good first six months with better results than same period 2018. Operations in Norway continued to improve because of various restructuring measures despite less reefer liner volume as the company reduced the capacity by two vessels between periods. Volume in Trans-Atlantic services continued to grow which positively affected the North-America operation. Export volume from Faroe Islands declined in second quarter due to lower ground fish catch and different pelagic product mix. The forwarding volume decreased in Q2 compared to same period last year, however it did not affect the results due to improved margins.

Following a good first quarter in Container liner services, operating results in second quarter were affected by lower level of volume in import to Iceland due to cool down in the Icelandic economy. In addition, after strong export volumes in the first five months of the year, volume declined materially in June and July but has started to pick up again in mid-August. The decline in export volume is mainly explained by the effect of no capelin season as seafood companies turned increasingly to other species until quota limits were reached earlier than last year. Furthermore, mackerel volumes from Greenland, discharged in Iceland for export were substantially lower than Q2 last year. Domestic services in Iceland such as trucking and warehousing were negatively affected by the lower volume in Q2.

We currently have the container sailing system under review to adjust for the lower volume levels with the aim of lowering fixed operating costs, secure high customer service level and to pave the way for the Royal Arctic Line cooperation. The goal is to present adjusted sailing system later this year, the work is well under way and we are confident that we will continue to operate the best sailing system to and from Iceland and the Faroe’s. We expect the new vessels to be delivered in Q4, slightly later than previously expected and the co-operation with Royal Arctic Line to commence in Q1 2020.

For the last months we have worked on various projects with the aim of streamlining the operation, improving profitability and increasing productivity. Integration of TVG-Zimsen was completed in Q2 and we are starting to see the benefits in Q3. I am pleased to see that the cost cutting measures in the head office divisions executed in Q1 started to materialize in Q2.

Eimskip’s management has strong focus on cash generation and I am pleased to see that cashflow from operation increase substantially in the first six months compared to same period last year.  We are currently working on a target future capital structure for the Company along with a 3-year maintenance CAPEX plan and hope to present that later this year.

A decision has been made to evaluate a potential divestment of Seatours (Sæferðir), Eimskip’s subsidiary in sea related tourism. We expect to have a decision on this matter in the next few months.

The Board of Directors has approved to work towards consolidating Eimskip’s headquarters in the office facility in the warehouse Vöruhótel and to implement activity-based work environment. In relation to this project we expect to reduce office space in the Sundahöfn terminal area by approx. 50% resulting in positive financial benefits. This is in line with management’s strategy of increasing profitability of core operation and I am looking forward to a more dynamic work environment which will increase collaboration, shorten lines of communication and meet our employees needs of more modernized workplace.”


  • Egill Örn Petersen, CFO, tel.: +354 525 7202
  • Edda Rut Björnsdóttir, Head of Marketing- & Communication, tel.: +354 825 3399, email: investors@eimskip.is