EIMSKIP: Results for Q1 2022
May 12 2022 - 11:16AM
EIMSKIP: Results for Q1 2022
Highlights of Q1 2022 results
- Positive improvements in container liner QoQ and profitability
at a healthier level.
- Good volumes in import and export to and from Iceland.
- Trans-Atlantic services continue to perform very well.
- Strong financial improvement in Faroe Islands.
- Substantial increase in oil prices affecting cost but mitigated
by operational adjustments and active revenue management.
- International forwarding performed well in the quarter despite
lower volume, continued equipment shortage and lack of space in
some trade lanes.
- Managed to meet changes in customers’ needs following the war
in Ukraine.
- Global ocean freight- and charter rates have somewhat
stabilized and there are signs of the market getting closer to “a
new normal”.
- Revenue amounted to EUR 239.7 million, an increase of EUR 59.5
million or 33% when compared with Q1 2021.
- Positive volume development in liner combined with active
revenue management.
- Good revenue growth in forwarding services despite lower
volume.
- Revenue affected by price increases from 3rd party
transportation suppliers and oil prices.
- Expenses amounted to EUR 209.3 million, an increase of 27.7%,
mainly driven by significant increase in 3rd party expenses and oil
prices.
- Salary expenses increase by EUR 3.1 million or 10.5%, thereof
EUR 1.5 million due to currency effect.
- EBITDA increased substantially and amounted to EUR 30.4 million
compared to EUR 16.3 million for the same quarter 2021. EBITDA
ratio was 12.7% compared to 9% for the same quarter last year.
- Net earnings amounted to EUR 10.5 million compared to EUR 2.8
million for the same period in 2021 and is an acceptable result for
Q1.
- Strong cash flow from operations and amounted to EUR 26.3
million, an increase of EUR 18.1 million from same quarter last
year.
- Cash position at end of period amounted to EUR 51.2 million
compared to EUR 17.2 million at end of same quarter last year.
- Leverage ratio at 1.60x which is below long-term target of
2-3x.
VILHELM MÁR THORSTEINSSON, CEO“I am
pleased with our financial performance in the first quarter which
shows that we have successfully managed to improve the results in
our container liner services from an unacceptable level in the same
quarter last year. The external global environment remains
favorable for the shipping industry but the operational conditions
continue to be demanding.
EBITDA in the quarter amounted to EUR 30.4
million and increased by 86% from last year on the back of volume
increase in our liner services, improved results in container liner
and good performance of international forwarding. It is important
to bear in mind that we were not satisfied with the outcome of the
same quarter last year which was well below acceptable levels.
Eimskip’s liner services is heavy asset driven operation and
therefore it is important that the financial performance of our
company makes it possible for us to invest in new and more
environmentally friendly equipment and projects that are vital for
us to develop our customer service and operation in line with
global trends in sustainability, digitalization and automation. We
are benefitting from internal efforts such as a lower cost base
after past years’ integration and streamlining measures, group-wide
focus on revenue management, disciplined work procedures and
continuous monitoring of our operational results.
There was a good volume growth quarter on
quarter in Iceland and volume in our Norwegian reefer liner
services remained stable despite suspension of the call to Murmansk
from late February. The demand for Trans-Atlantic transportation
continues to be very high, the route has been fully booked
west-bound and we have also seen a substantial increase in
east-bound volume. To meet the excess demand we will shift capacity
from Norway during the slower summer season to the North-America
trade lane by rotating vessels within our sailing system. Our
international forwarding volume continues to be affected by
shortage of equipment and space with the large deep-sea lines, but
despite that the financial performance is on a good level.
We see some signs of stabilization in global
freight- and charter rates, however, there are still disruptive
factors and congestion affecting the transportation markets and the
situation is volatile. The global economic outlook is marked by
high volatility and geopolitical tension with challenges on both
the demand and supply side.
We are generally optimistic about the outlook
for the coming months and Eimskip is well positioned as a niche
player in the North-Atlantic region servicing home markets that are
import and export driven economies and with our focus on reefer
logistics in international forwarding.”
INVESTOR MEETING 13 MAY 2022
The Board of Directors of Eimskipafélag Íslands
hf. approved the Company’s Consolidated Financial Statements for
the period Q1 2022 at its meeting on 12 May 2022. Investors and
market participants are invited to a meeting on Friday 13 May 2022
at 8:30 a.m. at the Company’s headquarters, Sundabakki 2, second
floor. Participants are required to register their attendance
before the end of 12 May. The meeting will also be webcasted live
in Icelandic at www.eimskip.com/investors. Vilhelm Már
Thorsteinsson, CEO and María Björk Einarsdóttir, CFO, will present
the Company’s financial results for the period Q1 2022. Investor
presentation and a recording of the meeting will be available on
the Company’s investor relations website.
FURTHER INFORMATION
Edda Rut Björnsdóttir, Executive Vice President
of Human Resources & Communication, tel.: +354 825 3399, email:
investors@eimskip.com.
FORWARD-LOOKING STATEMENTS
Statements contained in this financial press
release that refer to the Company’s estimated or anticipated future
results or future activities are forward-looking statements which
reflect the company’s current analysis of existing trends,
information and plans. These forward-looking statements are subject
to a number of risks and uncertainties that could cause actual
results to differ materially depending on factors such as the
availability of resources, the timing and effect of regulatory
actions and other factors. Eimskip undertakes no obligation and
does not intend to update these forward-looking statements to
reflect events or circumstances occurring after this press release.
You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. All forward-looking statements are qualified in
their entirety by this cautionary statement.
- Eimskip - Consolidated Interim Financial Statements Q1
2022
- Eimskip - Q1 2022 Financial Results - Investor
Presentation
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