According to the management report for the first quarter 2018, Eimskip’s EBITDA is in the range of EUR 7.0 to 7.5 million compared to EUR 9.3 million for the first quarter 2017. The first quarter 2017 was affected by one off items of EUR 2.3 million explained by the fishermen strike in Iceland and other non-recurring items.
In the first quarter 2018, volume in the North Atlantic liner system on all six routes grew by 4%. The import volume to Iceland was lower than expected. Export from Iceland have been growing because of fresh and frozen fish but the capelin season was negatively affecting the volume. The Trans-Atlantic business has been increasing in volume. Imports to Faroe Islands grew but export was under expectations and Norway was in line with last year. Cost related to the increased capacity of the weekly sailing system is up by EUR 2.5 million. In the second quarter it is expected that the volume in relation to the contract with CMA CGM on the Green route between Halifax and Portland will start materializing. It is also expected that the volume of silicon material for the new factory PCC will start moving in the second quarter on the coastal route.
The volume in the forwarding segment grew by 10% mainly by organic growth. Despite the volume growth, the operation is not performing as expected mainly due to very slow operation in Africa affected by currency problems in the region. This problem started in the fourth quarter 2017 and continued during the first quarter of 2018.
The 16% weakening of the USD against the EUR from the first quarter last year negatively affected the operating results due to a long USD position for the operation.
The company is still preparing its Financial Statements for the first quarter. The above-mentioned EBITDA range is therefore subject to potential changes during the ongoing preparation process.
The first quarter of the year is generally the slowest quarter of the year in Eimskip’s operation and has generated on average 16.5% of the total EBITDA of the year for the last five years. Due to lower than expected results for the first quarter the EBITDA forecast for the year 2018 has been revised to EUR 57-63 million.
According to the company’s financial calendar, Eimskip will publish its Financial Statements for Q1 2018 on 17 May 2018 and will present the results at the investor meeting held on 18 May at 8:30 in Korngardar 2, Reykjavík.