EIMSKIP

Results for Q1 2023 - Seite 2

“We are overall pleased with the financial results in the first quarter. The container liner saw a moderate growth in volume and the three pillars of the system; Iceland, Faroe Islands and Trans-Atlantic services, all performed well in the quarter. Import to Iceland remained strong and export from Iceland and Faroe Islands benefitted from successful pelagic seasons while farmed salmon and industrial exports from Iceland were on a rather low level. Trans-Atlantic volume grew by 9.6% while the freight rates decreased in the quarter as the global shipping market normalized, however the rates were on similar level as in Q1 2022. The changes in the global market landscape affected our international forwarding operations where volume remained on a similar level to the year before, while financial results decreased as was expected.

Both revenue and expenses decreased in the quarter, mainly driven by lower cost of third-party services. Revenue in the quarter amounted to EUR 214.6 million and decreased by EUR 25.1 million from last year and expenses amounted to EUR 182.7 million and decreased by EUR 26.6 million. EBITDA in the quarter amounted to EUR 31.8 million and increased by EUR 1.5 million from same quarter last year and EBIT amounted to EUR 15.8 million, an increase of EUR 0.7 million. Net earnings amounted to EUR 12.5 million compared to EUR 10.5 million last year.

The second quarter has been eventful so far with the sale of the ferry Baldur, acquisition of the port agency and forwarding activities of Royal Arctic Line in Greenland, strategic changes to the sailing system and approval of new sustainability targets which include reaching net-zero emissions in 2040 and increasing share of women in the company’s management.

An agreement was signed in April for the sale of the ferry Baldur, which is servicing in Breiðafjörður under the brand Sæferðir. The ferry has for a long time been an important connection for the West Fjords, and its importance has increased even further with the growing activity in the area. Baldur will remain in service until this October when it will be delivered to its new owner. The Icelandic Road and Coastal Administration (Vegagerðin) is expected to issue a tender announcement for the ferry operations in Breiðafjörður soon and until the tender is concluded, uncertainty remains regarding the future of Sæferði’s ferry operation in the area.