Source: Eimskipafelag Islands hf.

EIM: Changed forecast for the year 2018, EBITDA between EUR 49-53 million

According to the management report for the third quarter of 2018, EBITDA for the quarter will be 8-10% lower compared to third quarter last year which amounted to EUR 19.3 million.

The main reasons for the decrease in EBITDA relate to drop in volumes in Norway as well as break-downs of reefer vessels, which had considerable negative impact on the results. Import to Iceland has also been below expectations. Volume in the weekly service in Trans-Atlantic and Short-Sea services has taken longer to build up than anticipated. In addition, the company realized one-off cost in relation to lay-offs of employees in Europe. The results from reefer forwarding continues to be below expectations.

In light of the management report for the third quarter of 2018 and expectations for the remainder of the year the EBITDA guidance for the year has been changed and is now in the range of EUR 49-53 million compared with EUR 57-63 million as issued in May 2018. In August, parallel to publishing of 2Q 2018, it was stated that expectation for the full year results would be in the lower to mid range of the EBITDA forecast.

The company is still preparing its Financial Statements for the third quarter and according to the financial calendar, Eimskip will publish its third quarter results for 2018 on Nasdaq Iceland on 20 November and a meeting for investors and market participants will be held in the Company’s headquarters at Korngardar 2 in Reykjavik on 21 November at 8:30.