EIMSKIP: RESULTS FOR THE YEAR 2021
February 17 2022 - 11:01AM
EIMSKIP: RESULTS FOR THE YEAR 2021
Highlights of the year 2021
- Record earnings for the Group in 2021.
- Container liner performing well after years of unacceptable
results. Successful changes to the sailing system and focused
revenue management main drivers, supported by good volume and
favorable global trends.
- Increased focus, adaptability and industry trends growing
transport of fresh products.
- Substantial growth in the Trans-Atlantic volume.
- International Forwarding operations with strong results,
especially in Asia, in a market characterized by very high global
prices and capacity constraints.
- This good result and the growing share of forwarding services
in Eimskip’s operations reduce the traditional seasonality in
earnings.
- Revenue amounted to EUR 882.7 million, an increase of
EUR 214.4 million or 32.1% when compared with the year
2020.
- Adjusted total expenses amounted to
EUR 768.4 million, an increase of EUR 161.8 million
mainly driven by increased activity and substantially 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.
- Very good increase in EBITDA with adjusted EBITDA amounting to
EUR 114.3 million compared to EUR 61.7 million in
2020, an increase of EUR 52.6 million. Adjusted EBIT
amounted to EUR 63.3 million compared to EUR 17.1 million in
2020.
- Very good contribution from the affiliate ElbFeeder in 2021 due
to higher global vessel charter rates and a sale of one of its
vessels.
- Significant increase in Net earnings with adjusted Net earnings
amounting to EUR 50.6 million, compared to EUR 4.5 million in
2020.
- Total maintenance CAPEX for the period on a lower than
planned level or amounting to EUR
13.1 million compared to EUR 12.9 million last
year.
- New investments on a very low level or amounting to EUR 2.3
million compared to EUR 39.8 million in 2020. However, investments
in two new vessels in 2020 explain majority of the amount in that
year.
- Strong cash flow from operations and high cash position at
year-end.
- Lease liabilities increase by EUR 55.9 million mainly due to an
increase in time charter rates and longer fixtures of leased
container vessels.
- All chartered container vessels on long-term contracts.
Increase in time charter rates not fully materialized in expenses
yet.
- Decreasing leverage ratio at 1.98x at year-end compared to
3.33x by end of 2020 while long-term target is 2-3x. Equity ratio
41.2% at year-end compared to a long-term target ratio of 40%.
- The Board of Directors will propose to the Annual General
Meeting, which will be held on March 17th, to pay approximately EUR
17.7 million in dividend for the year 2021 and to reduce share
capital by an amount equivalent to approximately EUR 7.5 million.
- Management is thankful for the excellent contribution,
dedication and proactive initiatives from Eimskip employees around
the world in a challenging operational environment.
Highlights of Q4 2021
results
- Strong operational performance in both liner and forwarding
services.
- Export Iceland with very strong volume.
- Exceptional results of the forwarding services in Asia.
- Overall high activity in December compared to previous
years.
- Effects of disruption in global transportation markets
continued and are now expected to last well into 2022.
- Revenue amounted to EUR 254.7 million, an increase of EUR 79.1
million or 45% when compared with Q4 2020.
- Price increases from 3rd party transportation suppliers
continue to affect revenue and cost.
- Good revenue growth in forwarding services with higher margins
despite lower volume.
- Expenses amounted to EUR 223.3 million, an increase of 38.9%,
mainly driven by significant increase in 3rd party expenses.
- Salary expenses increase by EUR 4.1 million or 14.5%. Thereof
EUR 1.8 million due to currency effect and EUR 2.3 million due to
e.g., increased activity, general wage increases and one-off
Holiday bonus to all employees.
- EBITDA increasing substantially and amounting to EUR 31.5
million compared to EUR 14.9 million for the same quarter 2020.
EBITDA ratio was 12.4% compared to 8.5% for the same quarter last
year.
- Net earnings amounted to EUR 13.7 million compared to EUR 0.8
million for the same period in 2020.
VILHELM MÁR THORSTEINSSON,
CEO“I am very satisfied with the performance in Q4 and for
the full-year results which were record high. The employee
contribution was outstanding, and we managed to proactively
maintain a high service level in a very challenging operational
environment. Financially, we continued to leverage from past years
integration and streamlining measures, operational adjustments and
active revenue management as well as favorable external
environment, especially in international transportation markets.
EBITDA was strong in 2021 or EUR 114.3m and adjusted Net
Earnings EUR 50.6m and have never been higher.
The share of revenue generated outside of
Iceland has been increasing and has in fact never been higher than
in Q4 or 61%. Our international forwarding operation delivered
strong results, especially in Asia, in a market characterized by
very high global prices and capacity constraints for most of the
year. The increased share and the good performance of the
international operations have reduced traditional seasonality in
earnings.
We have put great effort into improving
profitability of the container liner system which is now
materializing. Volume in export from Iceland was strong and we are
excited to service our seafood customers with logistic solutions in
the current capelin season. Volume in the Trans-Atlantic
services saw substantial growth during the year and demand for
transportation west-bound to North-America remains high. Volume to
and from the Faroe Islands increased over the course of the year
after a slow start e.g. due to continued effect of COVID-19 as well
as the changes in market conditions following Brexit. Domestic
Iceland performed very well and benefitted from good volume in the
container liner system.
We strive to provide our customers with
excellent services leveraging our position as a leading
transportation company in the North-Atlantic. For the last two to
three years we have been investing in our technology platforms to
support our customer service e.g. Microsoft Customer Engagement
solution, a new system for our liner and forwarding operation,
container management system and a new financial reporting and
planning platform.
Sustainability continues to be in focus at
Eimskip. We continue to take steps towards using green energy in
our operation with investments in e.g. electric harbor cranes and
more environmentally friendly reach stackers, trucks and cars. It
is good to see our new vessels Brúarfoss and Dettifoss contribute
to reduced emission per transported unit although we are aware of
the need for new energy source for vessels in coming years to meet
reduction targets.
The year 2022 starts well and results are
exceeding expectations so far in both liner- and forwarding
services. We are optimistic about the volume and margins in liner
services for the coming months as well as the expected contribution
from our international forwarding operations. The current
disruption in the global transportation markets is now expected to
last into second half of 2022.”
INVESTOR MEETING 18 FEBRUARY
2022
The Board of Directors of Eimskipafélag Íslands
hf. approved the Company’s Consolidated Financial Statements for
the year 2021 at its meeting on 17 February 2022. Investors and
market participants are invited to a meeting on Friday 18 February
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 17 February. 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 year 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, CFO, tel: +354 774
0604, 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.
- Eimskipafélag Íslands hf. Consolidated Financial Statements
2021
- 549300IUR8Q7Y44KBL02-2021-12-31-en.zip-viewer
- 549300IUR8Q7Y44KBL02-2021-12-31-en
- Eimskip - 2021 Financial Results - Investor Presentation
- Eimskip - Sustainability Statement 2021
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