EIMSKIP

Results for Q1 2023

HIGHLIGHTS OF QUARTER ONE 

• Overall good results, driven by strong performance of the Container liner services, while results in International forwarding decreased, as expected, with market conditions that have significantly changed as the global shipping market has normalized.
  • Sharp decline in global freight rates resulting in a decrease in both revenue and cost YoY, mainly through purchase of third-party services.
  • Overall moderate growth in liner volumes compared to same quarter last year or an increase of 5.3%.
  • Import to Iceland remained on a strong level and export from Iceland and Faroe Islands benefitted from strong pelagic seasons while export of farmed salmon and industrial cargo from Iceland was lower than expected.
  • Trans-Atlantic volume grew by 9.6% and rates decreased from Q4 2022 levels and were on a similar level as in Q1 2022.
  • International forwarding with marginal decrease in volume or 2.4% and solid financial results, despite decrease from previous year.
• Revenue in the quarter amounted to EUR 214.6 million, a decrease of EUR 25.1 million or 10.5% when compared with Q1 2022, mainly caused by lower global freight rates.
• Expenses amounted to EUR 182.7 million, a decrease of EUR 26.6 million or 12.7% from last year, mainly driven by a significant decrease in cost of 3rd party services.
• Salary expenses increased by EUR 2.7 million or 8.3% due to e.g., increase in FTEs and general wage increases partly offset by a positive currency effect of EUR 1.5 million.
• EBITDA in the quarter on a similar level as same time last year and amounted to EUR 31.8 million, up by EUR 1.5 million or 4.8%.
• EBIT in the quarter amounted to EUR 15.8 million which is an increase of EUR 0.7 million or 4.6%.
• Share of profit of affiliates amounted to EUR 1.9 million in the quarter, an increase of EUR 1.1 million from last year.
• Net earnings amounted to EUR 12.5 million compared to Net earnings of EUR 10.5 million for the same period in 2022.
• Good cash flow, with net cash from operating activities amounting to EUR 34.3 million, an increase of EUR 5.5 million compared with same quarter last year, mainly driven by changes in net working capital.
  • Strong liquidity at end of the period with a cash position of EUR 86.8 million compared to EUR 51.2 million at end of same quarter last year. At the end of the quarter, around EUR 22.7 million were allocated to dividend payment and EUR 12.7 million to share capital reduction, both paid in April.
• Total maintenance CAPEX and new investments in line with plan for the first three months and amounted to EUR 7.2 million compared to EUR 4.4 million for the first three months last year.

VILHELM MÁR THORSTEINSSON, CEO