Key Financial Highlights
KEY FIGURES
Amounts are in thousands of EUR
| Consolidated Income Statement | 2018 | 2017 | Change | 2016 | 2015 | 2014 | ||||||
| Revenue | 689,154 | 663,973 | 3.8% | 513,922 | 499,581 | 451,555 | ||||||
| Expenses | 639,916 | 606,775 | 5.5% | 460,447 | 454,384 | 413,013 | ||||||
| Operating profit - EBITDA | 49,238 | 57,198 | (13.9%) | 53,475 | 45,197 | 38,542 | ||||||
| Depreciation and amortization | (32,548) | (30,148) | (8.0%) | (28,077) | (24,729) | (23,195) | ||||||
| Results from operating activities - EBIT | 16,690 | 27,050 | (38.3%) | 25,398 | 20,468 | 15,347 | ||||||
| Net finance (expense) income | (4,923) | (7,236) | 32.0% | (345) | 419 | 591 | ||||||
| Share of (loss) earnings of associated companies | (1,753) | (339) | - | 210 | 331 | 229 | ||||||
| Net earnings before income tax | 10,014 | 19,475 | (48.6%) | 25,263 | 21,218 | 16,167 | ||||||
| Income tax | (2,612) | (2,671) | 2.2% | (3,368) | (3,416) | (2,560) | ||||||
| Net earnings for the year | 7,402 | 16,804 | (56.0%) | 21,895 | 17,802 | 13,607 | ||||||
| Earnings per share in EUR | 0.0378 | 0.0885 | (57.3%) | 0.1148 | 0.0929 | 0.0722 | ||||||
| Revenue change | 3.8% | 29.2% | 2.9% | 10.6% | 4.1% | |||||||
| EBITDA ratio | 7.1% | 8.6% | 10.4% | 9.0% | 8.5% | |||||||
| EBIT ratio | 2.4% | 4.1% | 4.9% | 4.1% | 3.4% | |||||||
| Net debt / EBITDA | 2.80 | 1.80 | 0.78 | 0.78 | 0.65 | |||||||
| Consolidated Statement of Financial Position | 31.12.2018 | 31.12.2017 | Change | 31.12.2016 | 31.12.2015 | 31.12.2014 | ||||||
| Assets | 486,296 | 459,515 | 5.8% | 391,691 | 355,157 | 332,040 | ||||||
| Non-current assets | 335,172 | 313,529 | 6.9% | 253,256 | 233,280 | 214,278 | ||||||
| Current assets | 151,124 | 145,986 | 3.5% | 138,435 | 121,877 | 117,762 | ||||||
| Equity | 238,926 | 244,610 | (2.3%) | 243,775 | 228,124 | 216,472 | ||||||
| Liabilities | 247,370 | 214,905 | 15.1% | 147,916 | 127,033 | 115,568 | ||||||
| Non-current liabilities | 140,753 | 117,614 | 19.7% | 64,456 | 55,550 | 49,904 | ||||||
| Current liabilities | 106,617 | 97,291 | 9.6% | 83,460 | 71,483 | 65,664 | ||||||
| Interest-bearing debt | 159,593 | 125,984 | 26.7% | 81,149 | 71,401 | 64,432 | ||||||
| Net debt | 137,652 | 102,815 | 33.9% | 41,606 | 35,418 | 24,893 | ||||||
| Tangible assets / Total assets | 86.0% | 85.4% | 89.4% | 92.6% | 94.2% | |||||||
| Equity ratio | 49.1% | 53.2% | 62.2% | 64.2% | 65.2% | |||||||
| Consolidated Statement of Cash Flows | 2018 | 2017 | Change | 2016 | 2015 | 2014 | ||||||
| Net cash from operating activities | 29,029 | 37,420 | (22.4%) | 48,667 | 37,357 | 31,603 | ||||||
| Net cash used in investing activities | (51,905) | (75,139) | 30.9% | (39,907) | (35,206) | (18,311) | ||||||
| Net cash provided by (used in) financing activities | 20,631 | 22,581 | (8.6%) | (4,761) | (5,173) | (572) | ||||||
| Changes in cash and cash equivalents | (2,245) | (15,138) | 85.2% | 3,999 | (3,022) | 12,720 | ||||||
| Effects of exchange rate fluctuations on cash held | 1,017 | (1,236) | - | (439) | (534) | 449 | ||||||
| Cash and cash equivalents at year-end | 21,941 | 23,169 | (5.3%) | 39,543 | 35,983 | 39,539 |
KEY RATIOS
Revenue
EUR million
EBITDA
EUR million
NET DEBT / EBITDA
Revenue by quarter
EUR million
EBITDA BY QUARTER
EUR million
NET DEBT AND EQUITY RATIO
EUR million
KEY HIGHLIGHTS
| EUR million | 2018 | 2017 | Change | ||
| Revenue | 689.2 | 664.0 | 3.8% | ||
| EBITDA | 49.2 | 57.2 | (13.9%) | ||
| EBIT | 16.7 | 27.1 | (38.3%) | ||
| Net earnings | 7.4 | 16.8 | (56.0%) | ||
| CAPEX | 47.4 | 61.9 | (23.4%) | ||
| Net cash from operating activities | 29.0 | 37.4 | (22,4%) | ||
| Total assets | 486.3 | 459.5 | 5.8% | ||
| Equity ratio | 49.1% | 53.2% |
A year of challenges
EBITDA results took a downturn in 2018, despite record high volumes and revenue. The Company faced challenges in its reefer liner services in Norway due to a drop in volume and breakdown of vessels. Forwarding services in Europe also took a downturn mainly due to adverse market conditions. At end of 2017 the Company added the third vessel to its Green Line, committing to weekly services between Europe and North-America via Iceland. Volume buildup was slow in the first half of 2018 but gained momentum in the second half of the year bringing container liner services back on track from previous year.
Transported Volume
Volume growth was 4.2% in the Company’s North Atlantic liner services from 2017 to 2018, mainly due to strong growth in Trans-Atlantic volumes and exported volume from Iceland, while there was a decrease in volume in the Norway operation. Transported volume in the Company’s forwarding services grew by 4.3% from the previous year, which can mainly be attributed to dry cargo transport.
Operational Results
Eimskip’s net earnings amounted to EUR 7.4 million in 2018, decreasing by EUR 9.4 million, or 56.0%, from 2017, mainly reflecting EUR 8.0 million downturn in EBITDA results.
Revenue amounted to EUR 689.2 million, compared to EUR 664.0 million in 2017. The revenue increase is mainly explained by volume growth and new acquisitions in the year 2017. In 2018 65% of revenue came from the liner services and 35% from forwarding services.
Expenses for the year amounted to EUR 639.9 million, an increase of 5.5%. Salaries and related expenses amounted to EUR 137.5 million, an increase of 1.4%.
Operating profit, or EBITDA, amounted to EUR 49.2 million compared to EUR 57.2 million in 2017, a decrease of 13.9%. The decrease in EBITDA was mainly driven by three factors, a volume drop and breakdown of vessels in the reefer liner operation in Norway, a downturn in forwarding services in Europe and slower growth than expected in volume on the Company’s Green line following a capacity increase at end of 2017. The EBITDA ratio for the year was 7.1% compared to 8.6% in 2017.
Financial Position and Capital Expenditure
Eimskip’s balance sheet at year-end 2018 remained solid, with assets amounting to EUR 486.3 million and 49.1% equity ratio. Interest-bearing debt amounted to EUR 159.6 million at year-end, an increase of EUR 33.6 million, and net debt was EUR 137.7 million, or an increase of EUR 34.8 million from the previous year.
Net cash from operating activities amounted to EUR 29.0 million and decreased by EUR 8.4 million or 22.4% from the previous year. Dividends in the amount of EUR 10.4 million, or ISK 1,269.1 million, was paid to shareholders in April 2018. Cash and cash equivalents amounted to EUR 21.9 million at year-end.
Total capital expenditure, or CAPEX, amounted to EUR 47.4 million in 2018. Thereof maintenance CAPEX, including vessel dockings, was EUR 28.4 million. CAPEX in 2017 amounted to EUR 61.9 million, whereof maintenance CAPEX was EUR 23.8 million, including vessel dockings. Net acquisitions in new subsidiaries amounted to EUR 3.5 million in 2018 compared to EUR 18.4 million in the previous year.