Eimskip

First quarter 2024 results

Highlights of Q1 2024 results 

• Slow start of the year and challenging market conditions affecting results for first quarter, mainly due to lower results from Container liner operation.
  • Liner services results are marked by transformation in Trans-Atlantic rates compared to the previous year and lower volumes in Iceland, Faroe Islands and Trans-Atlantic.
  • International forwarding business performed well in the quarter and delivered solid results despite a moderate decrease from previous year as anticipated.
• Revenue amounted to EUR 195.9 million, a decrease of EUR 18.7 million or 8.7% when compared with Q1 2023.
  • Main drivers behind the revenue decrease are lower Trans-Atlantic rates and volume and lower import volume to Iceland and the Faroe Islands combined with different cargo mix in the Icelandic trade, e.g. no capelin season, sharp reduction in import of cars and increased export of recycling materials.
• Expenses amounted to EUR 181.7 million, a decrease of EUR 1.1 million or 0.6% from Q1 2023.
  • Bunker expenses decreased due to both lower prices and less consumption.
  • Salary expenses increased by EUR 2.5 million or 7.1% compared to Q1 2023 due to general wage increases as FTE remained stable.
• EBITDA for the quarter amounted to EUR 14.2 million compared to EUR 31.8 million in Q1 2023, which was a record first quarter. EBITDA ratio was 7.3% compared to 14.8% for the same quarter last year.
• EBIT for the quarter amounted to EUR -0.9 million compared to EUR 15.8 million in Q1 2023.
• Net earnings amounted to EUR 0.5 million compared to EUR 12.5 million for the same period in 2023.

VILHELM MÁR THORSTEINSSON, CEO

“We had a slow start of the year which, combined with challenging market conditions, affected the financial results for the first quarter of 2024. If we look at the results by segments, the primary driver behind the EBITDA decrease from previous year is our Container liner operation. Traditionally, first quarter has lower volumes in container transportation in Iceland and the Faroe Islands, but this year volume picked up at a slower pace during the quarter than was anticipated, resulting in a decrease in Container liner volume in these two important markets year-on-year. In the Trans-Atlantic services, volume and freight rates contracted substantially compared to the first quarter of 2023 when that market was extremely strong. However, we saw a positive volume increase from the fourth quarter of 2023, demonstrating resistance after a period of volume reduction, partly on back of focused sales initiatives in our international sales network. In Iceland, average freight rates were negatively affected by market dynamics such as lack of capelin quota, while export of recycling materials grew significantly from the previous year. In the Faroe Islands, private consumption has been under pressure since mid-last year, causing contraction in import while the export market has remained solid, with a stable output of farmed salmon and generally good fisheries. In Norway, volume in our reefer liner services picked up as the quarter progressed alongside the whitefish season. However we have experienced a shift in that market towards increased coastal transportation at the expense of exports, which has caused average rates to decline.