Eimskip: Third quarter 2024 results
05 November 2024 - 4:30PM
UK Regulatory
Eimskip: Third quarter 2024 results
Highlights of Q3 2024
results
- Good revenue growth resulting in the best quarter this year and
close to a good third quarter last year.
- Revenue increased by EUR 18.6m from last year and amounted to
EUR 220.6m in the quarter
- Liner revenue decreased by EUR 2.7m while Forwarding revenue
increased by EUR 21.3m
- Liner revenue in the quarter were the strongest this year
- Good growth in export from Iceland and high activity in
domestic Iceland as well as increased volume in Trans-Atlantic
combined with higher rates
- Increase in Forwarding revenue driven by higher global freight
rates especially in Asia connected trade lanes
- Expenses amounted to EUR 187.7m, an increase of EUR 20.2m,
driven by cost of third-party logistics services which increased by
EUR 17.8m from previous year
- Bunker expenses decreased by EUR 0.2m despite the cost of the
newly imposed ETS expense amounting to EUR 0.9m in the quarter
- Salary expenses increased by 2.1% or EUR 0.7m partly offset by
reduction in number of FTEs compared to same quarter last year
- EBITDA amounted to EUR 32.9m, EUR 1.6m down from previous year
which was a good quarter
- Liner EBITDA amounted to EUR 22.9m and decreased by EUR 2.1m
with a continued rebound from end of last year with a healthy Liner
EBITDA ratio at 16.2% and EBIT ratio at 7.6%
- Forwarding EBITDA amounted to EUR 10.0m and increased by EUR
0.6m with an increase in Forwarding EBITDA ratio which was 12.6%.
Higher global freight rates contributed to the increase although
volume was slightly lower compared to the same quarter last
year
- EBIT remained at the same level as last year and amounted to
EUR 18.7m
- Net earnings amounted to EUR 14.3m compared to EUR 16.6m for
the same period in 2023
VILHELM MÁR THORSTEINSSON, CEO
“We are pleased to report good results for the
third quarter of 2024 driven by generally high activity across the
group. The EBITDA for the quarter amounted to EUR 32.9m compared to
EUR 34.5m in the third quarter last year and showing a continued
rebound from the beginning of this year.
The EBITDA was supported by good performance of
our container liner services that showed a decent volume growth,
particularly in export from Iceland and on Trans-Atlantic routes,
despite a marginal decline in import to Iceland. The increase in
export from Iceland was primarily driven by the mackerel season,
strong months in salmon and fresh fish, as well as continued good
volume in recycling materials which however has some lowering
effect on overall margin. At the same time, Trans-Atlantic volumes
rose year-over-year due to a combination of higher demand and
reduced supply on the sailing route between Europe and North
America. Although rates have increased during the quarter, they
remain lower than at the same period last year. However, the
balance in the system between east- and westbound has improved,
positively affecting the overall financial performance. The reefer
liner service in Norway delivered a solid quarter with volume
growth in both directions.
Our International Forwarding operations
delivered good results in the quarter with improved margins from
previous year despite marginal decrease in volume. The global
freight rates have been very volatile and surged during the first
half of the year but have been gradually decreasing from the
beginning of the third quarter while remaining on a significantly
higher level than same time last year. The disruption in the Red
Sea continues and is unfortunately expected to persist well into
next year. However, the market has stabilized as the supply
situation is catching up after high demand earlier this year.
The management team recognizes that many
ambitious investment projects are on the horizon in Iceland, some
of which are of such a scale that they could materially impact
economic growth prospects in Iceland in the coming years. Eimskip
plays a key role in bringing valuable products from domestic
producers to foreign markets, and increased international
competition has called for continuous improvements within the
company and among its customers, encouraging strong cost-awareness.
An efficient transportation system creates value for growing
economies and our role, since the company's founding, have been
aimed at supporting the growth and prosperity of our home markets.
With a vast integrated network of sea, land, and coastal
transportation, Eimskip is part of the infrastructure and value
creation. Upcoming are parliamentary elections in Iceland and it
would be desirable if the incoming government would emphasize
predictability for the economy and thereby support the ambitious
plans that have been presented.
As we look ahead, we remain optimistic for the
remainder of the year, supported by stable demand in our core
markets. The quota year is off to a good start in Iceland combined
with continued good volume in salmon while import to Iceland
remains on a stable level. The fisheries in Faroe Islands have not
started as strong as we had hoped but we are optimistic that catch
will pick up. In the International Forwarding operations, we
anticipate ongoing fluctuations in global freight rates, while we
expect solid volume in the current quarter.”
INVESTOR MEETING 6 NOVEMBER
2024
The Board of Directors of Eimskipafélag Íslands
hf. approved the Company’s Condensed Consolidated Interim Financial
Statements for third quarter 2024 at its meeting on 5 November
2024. Investors and market participants are invited to a meeting on
Wednesday, 6 November 2024, 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 Rósa Guðmundsdóttir, CFO, will present
the Company’s financial results for Q3 2024. Investor presentation
and a recording of the meeting will be available on the Company’s
investor relations website.
FURTHER INFORMATION
Guðbjörg Birna Björnsdóttir, Head of Treasury and Investor
Relations, tel: +354 844 4752, 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 Statement Eimskip Q3
2024
- Eimskip - Q3 2024 Financial Results Presentation
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