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.

Consolidated Financial Statements 2018