Icelandic Eimskip reported revenues growth in Q1 2017

Eimskip The revenue of the Icelandic shipping and forwarding group Eimskip amounted to 146.9 million EUR in the first quarter of 2017, which is 29.7% higher than the same period last year. The company notes that 18.2% of growth was supported by new acquisitions and 11.5% by organic growth. The operating profit (EBITDA) of Eimskip amounted to 9.3 million EUR compared to 9.6 million EUR in the first quarter of last year. The decrease was due to the effect of the fishermen strike in Iceland and a fine of 0.5 million EUR imposed by the regulator in Iceland. The adjusted EBITDA for the quarter amounted to 11.6 million EUR, which is 20.5% more than an year earlier.

The newly acquired companies Mareco Group and Extraco added 1.5 million EUR to EBITDA for the quarter.

Eimskip’s total expenses grew by 32.8% compared to the first quarter of 2016, mainly as a result of the expansion of the group. The net profit for the quarter amounted to 200 thousand EUR against 1.8 million EUR in January-March last year, which was also the result of increased investment.
The revenue from line operations amounted to 92.1 million EUR, which is an increase of 8.9 million EUR or 10.7% yoy. The volume of shipments of linear business grew by 3%, mainly due to an increase in imports to Iceland. The growth in the volume of forwarding business is 28.9%, while revenue increased by 82.6% to 54.8 million EUR. In general, such rapid growth is due to the addition of new companies to the group. Organic growth in business led to an increase of 13.2%.

In January, Eimskip signed a cooperation agreement with the Greenland Royal Arctic Line and acquired 80% of the Belgian forwarder Mareco. The specialization of Mareco is the organization of delivery of refrigerated cargo to Western, central and southern Africa. The annual turnover of the company is 60 million EUR and the volume of transportation is about 32,000 TEU per year.

In early April, Eimskip announced the acquisition of 51% of the shares of American CSI Group LLC for 1 million EUR. The annual revenue of CSI is about 5 million EUR with an EBITDA margin of about 10%.

On April 3, 2017, the Norwegian Antimonopoly Authority did not agree on a deal to purchase Eimskip from Norway’s Nor Lines AS because of the threat of competition.

Eimskip operates a fleet of 21 vessels, of which thirteen are in ownership and eight are chartered. Fourteen vessels serve the linear container services, three operate on the spot market, one is used for bulk cargo transportation, and three – on the ferry lines.