EIMSKIP: Operating results for Q3 2021
November 09 2021 - 11:13AM
EIMSKIP: Operating results for Q3 2021
Highlights of Q3 results
- Good results in both liner and forwarding services partly due
to favorable global market conditions.
- Continued strong results in container liner driven by good
volume development, especially in Iceland export and Trans-Atlantic
services, and active revenue management.
- Reefer liner services in Norway with good results on account of
high utilization and improved balance.
- Excellent results in international freight forwarding in a
market characterized by very high global prices and capacity
constraints.
- Record high results for the Asia operations in the
quarter.
- Revenue amounted to EUR 236.6 million, an increase of EUR 66.2
million or 39% when compared with Q3 2020.
- Significant price increases from 3rd party transportation
suppliers are resulting in corresponding increase in sales
revenue.
- Good revenue growth in forwarding services despite lower
volume.
- Expenses amounted to EUR 199.8 million, an increase of 34%,
mainly driven by significant increase in 3rd party expenses.
- Salary expenses increase by EUR 4.3m or 17%. Thereof, currency
effect amounts to EUR 1.7m and EUR 2.6m due to e.g., increased
activity and general wage increases.
- EBITDA increasing substantially or by EUR 15.4 million and
amounting to EUR 36.8 million compared to EUR 21.4 million for the
same quarter 2020. EBITDA ratio was 15.5% compared to 12.6% for the
same period last year. EBIT amounted to EUR 23.8 million compared
to EUR 10.4 million or an increase of EUR 13.4 million for the same
period in 2020.
- Good contribution from affiliates in the quarter, mainly due to
Eimskip’s share in profit from sale of one of ElbFeeder’s vessels
in the amount of EUR 3.0 million as published in August 2021.
- Net earnings amounted to EUR 20.7 million compared to EUR 6.2
million for the same period in 2020.
- Equity ratio was 41.3% and adjusted leverage ratio was 2.18,
both in line with published targets.
Highlights of 9M 2021
results
- Revenue amounted to EUR 628.0 million, an increase of
EUR 135.3 million or 27.5% when compared with the same period
in 2020.
- Adjusted total expenses amounted to
EUR 545.2 million, an increase of EUR 99.3 million
mainly driven by increased activity and higher 3rd party expenses.
- Total expenses adjusted for the settlement made with the
Icelandic Competition Authority in Q2 in the amount of EUR 10.2
million.
- Good increase in EBITDA with adjusted EBITDA amounting to
EUR 82.8 million compared to EUR 46.7 million in the
same period last year, an increase of EUR 36.1
million. Adjusted EBIT amounted to EUR 45.8 million compared
to EUR 13.9 million for the same period last year.
- Substantial increase in Net earnings where adjusted Net
earnings amounted to EUR 36.9 million, compared to EUR 3.7
million in the same period of 2020.
- Total CAPEX for the period amounted to EUR
9.4 million compared to EUR 32.8 million in
same period last year, whereof EUR 18.5 million investment in new
vessels in 9M 2020.
- Updated guidance for adjusted EBITDA for the full year 2021 in
the range of EUR 102 - 110 million compared to EUR 90 – 100 million
as previously published. This translates into adjusted EBIT of
approximately EUR 51 – 59 million.
- Based on actual results for 9M 2021 and updated forecast for
Q4.
VILHELM MÁR THORSTEINSSON,
CEO
“I am very satisfied with the continued strong
performance in third quarter. The results are marked by good
contribution from both liner and forwarding services which are the
main drivers for the improved results. The exceptional global
market conditions in the transportation sector continue to be
challenging and as before these conditions affect both revenue and
cost but we are seeing the first signs of stabilization in global
price indexes.
EBITDA was strong in the period or amounting to
EUR 36.8m with net earnings never stronger in one quarter or
amounting to EUR 20.7m. We had another good quarter in the
container liner driven by good volume development, especially in
Iceland export and Trans-Atlantic services, and active revenue
management. Reefer liner services in Norway also delivered good
results on account of high utilization and improved balance. In the
international freight forwarding we had strong results in a market
characterized by very high global prices and capacity constraints,
and I’m pleased to see record high results in our Asia operations
in the quarter.
The volume in the Trans-Atlantic services has
been growing steadily since 2017, when weekly services started.
Since first quarter this year we have had fully utilized vessels
westbound to North America and the volume growth in third quarter
was 50% compared to same quarter last year. The Trans-Atlantic
volume enables us to offer our customers weekly services between
Iceland and North America.
In a challenging global market environment, we
have managed to provide our customers with excellent liner and
forwarding services, leveraging our position as a leading
transportation company in the North-Atlantic with a strong
international office network. We build on strong customer
relationships and employee expertise and are well positioned with
our focus on frozen and chilled commodities.
Despite challenging situation in global
transportation markets the outlook for fourth quarter is good and
as a result we have updated our guidance for the year upwards.
“
INVESTOR MEETING 10 NOVEMBER
2021
The Board of Directors of Eimskipafélag Íslands
hf. approved the Company’s Condensed Consolidated Interim Financial
Statements for Q3 2021 at its meeting on 9 November 2021. Investors
and market participants are invited to a meeting on Wednesday 10
November 2021 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 9 November. 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 Q2 2021.
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.
María Björk Einarsdóttir, Executive Vice
President, tel.: +354 825 7350, email: maria@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 Q3
2021
- Eimskip - Q3 2021 Financial Results - Investor
Presentation
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