Eimskip: Results for Q3 2022
03 Noviembre 2022 - 10:06AM
Eimskip: Results for Q3 2022
HIGHLIGHTS OF Q3 2022
RESULTS
- Generally strong performance of all business segments in the
quarter, bearing in mind that the third quarter is traditionally
the strongest quarter of the year for the group.
- Container Liner services performing well with good utilization
and increased operational efficiency.
- Continued strong volume in import to Iceland and
Trans-Atlantic.
- Export Iceland volume started to pick up at the end of the
quarter after a relatively slow summer.
- Financial contribution from Trans-Atlantic services continues
to be substantially higher than last year, supported by rates and
volume that reflect the high demand on this international trade
lane.
- High activity and good contribution from services supporting
the liner system such as land transportation, warehousing and cold
storage and customs services.
- International forwarding continued to perform well in the
quarter despite growing global economic uncertainties.
- Space and equipment availability with the Deep-Sea lines
continued to improve in the quarter.
- Global freight rates started to drop significantly in the
latter half of the quarter, putting pressure on margins.
- Revenue in the quarter amounted to EUR 292.2 million, an
increase of EUR 55.6 million or 23.5% when compared with Q3 2021.
- Generally strong liner volume, especially in import to Iceland
and Trans-Atlantic services.
- Some increase in revenue in forwarding services despite lower
volume, however margins decrease slightly from previous year.
- Price increases from 3rd party transportation suppliers and
higher oil prices also a contributing factor in revenue
increase.
- Expenses amounted to EUR 242.6 million, an increase of 21.4%
from last year, mainly driven by significant increase in 3rd party
expenses and oil prices, with liner and salary expenses increasing
as well.
- Good growth in EBITDA which amounted to EUR 49.6 million
compared to EBITDA of EUR 36.8 million for the same quarter 2021.
EBITDA ratio continues at a healthy level and was 17.0% compared to
EBITDA ratio of 15.5% for the same quarter last year.
- Net earnings amounted to EUR 28.1 million compared to Net
earnings of EUR 20.7 million for the same period in 2021.
- Strong cash flow from operations which amounted to EUR 37.2
million, an increase of EUR 10.2 million compared to same quarter
last year.
- Cash position at end of the period amounted to EUR 46.6 million
compared to EUR 25.1 million at end of same quarter last year.
- Leverage ratio at 1.23x which is below long-term target of
2-3x.
- This strong financial position is an advantage in the current
external environment.
- Total maintenance CAPEX and investments for the first nine
months amounted to EUR 20.6 million compared to EUR 9.4 million for
the first nine months last year.
VILHELM MÁR THORSTEINSSON,
CEO
“We had a generally strong performance of all
business segments in the quarter and I am pleased to see that our
results are built on a diverse foundation with more than half of
our income originated outside of the Icelandic Economy. We continue
to see improvements in our container liner which are mainly driven
by strong growth in our Trans-Atlantic services. Furthermore, there
was high activity and good contribution from services supporting
the liner system such as land transportation, warehousing and cold
storage and customs services. There was a slight decrease in
revenue in the International Freight Forwarding segment which
reflects the changes in the global economy, with a drop in
international freight rates and less demand for transportation in
some trade lanes, however with same EBITDA results as last
year.
Both revenue and expenses increase substantially
from same quarter last year mainly driven by cost of 3rd party
services, bunker prices and high activity. Our Trans-Atlantic
services continue to strengthen and have become an important pillar
in our container liner and we have announced that we will be adding
a fourth vessel on the North America trade lane later in November.
EBITDA in the quarter amounted to EUR 49.6 million and increased by
35% from same quarter last year and EBIT amounted to EUR 34.1
million, an increase of EUR 10.3 million. Net earnings
amounted to EUR 28.1 million and cash position at the end of the
period amounted to EUR 46.6 million.
Global freight rates decreased substantially in
most trade lanes in the quarter reflecting the situation and
uncertainty in the Global economy. This affects margins in the
International Forwarding operations although improved availability
of space and equipment with the Deep-Sea lines should allow for
some increase in volume, partly offsetting the rate reduction.
Eimskip’s freight forwarding operation is specialized in
transportation of chilled and frozen commodities which is favorable
under the current circumstances, since demand for foodstuff is
generally more resilient than demand for other goods in a
recessionary environment.
Eimskip continues to think green and during the
quarter important steps were taken towards energy transition in the
operations with a formal co-operation with National Power Company
of Iceland, Landsvirkjun and investments in the first electric
trucks in Eimskip’s fleet. Furthermore, we have started to analyze
and evaluate our options when it comes to renewing the container
vessel fleet, focusing on the next generation of vessels using
alternative greener fuel.
Overall, there has been a good start of the
fourth quarter and we are positive for the remainder of the year.
The global economic outlook for next year is marked by great
uncertainty and inflationary pressure that is affecting both
international trade volume and labor markets world-wide. We believe
Eimskip is well positioned with its core operations in the
North-Atlantic in economies rich of natural resources which are
driven by exports and highly dependent on imports of consumer goods
and commodities.”
INVESTOR MEETING 4 NOVEMBER
2022
The Board of Directors of Eimskipafélag Íslands
hf. approved the Company’s Condensed Consolidated Interim Financial
Statements for 1 January to 30 September 2022 at its meeting on 3
November 2022. Investors and market participants are invited to a
meeting on Friday 4 November 2022 at 8:30 a.m. at the Company’s
headquarters, Sundabakki 2, second floor. 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 Q3 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.
- Condensed Consolidated Interim Financial Statements Q32022
- Eimskip - Q3 2022 Financial Results - Investor
Presentation
Eimskipafelag Islands Hf (LSE:0QB3)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Eimskipafelag Islands Hf (LSE:0QB3)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024