Eimskip: Management Financial Report. Fourth quarter and full year 2024 results

HIGHLIGHTS OF Q4 2024 RESULTS   Good results in Q4 across the group and continued rebound from a slow start of the yearResults in Liner services driven by strong volume and rates in Trans-Atlantic services, good export volume and cargo mix from Iceland that also supported a solid result for Domestic IcelandStrong performance of international forwarding in the quarter, driven by good volumes and contribution due to higher global freight ratesRevenue amounted to EUR 227.2 million,...

Reykjavik, 04/02/2025 (informazione.news - comunicati stampa - trasporti)

 

“We are satisfied with the performance of 2024, especially after a slow start of the year. The result of the first quarter was disappointing but a gradual improvement was seen throughout the year, with over sixty percent of EBITDA generated in the second half of the year. The biggest contributor to the improved results was the rebound of the container liner in the latter half of the year with rising momentum in the Trans-Atlantic services, good volume and cargo-mix in export Iceland and strong results in international forwarding. The Trans-Atlantic development was attributed to strong volumes, combined with increased rates, partly due to imminent strikes at US east coast harbors. Import to Iceland softened compared to 2023, especially import of vehicles as was expected. Import to the Faroe Islands grew in the latter half of the year, due to increased project cargo, and volume in the Norwegian reefer liner services increased year on year although delivering somewhat lower financial results on back of different cargo mix. Domestic Iceland was at stable levels in 2024 compared to the previous year and supported by generally high activity in the seafood and salmon sectors.

The global shipping market is extremely dynamic with high volatility in rates, and we certainly saw massive rise in global freight rates during the year, affecting our customers freight cost, while rates in Eimskip's liner services were at much more stable levels. We changed our container sailing system at the start of the year with the aim of increase customer service and reduce cost and successfully managed to reduce sailed miles and bunker consumption and at the same time increase reliability.

We continued to invest in our company with maintenance capex amounting to EUR 27 million and new investments EUR 11.5 million, both in line with plan, and a new three-year plan is in the range of EUR 29 - 32 million and EUR 15 -18 million respectively. This does not include potential investments in new vessels, which we have been working on for the last year and a half, since no formal decision has been made yet.

We continued to develop our workforce and introduced new learning and training material in our Eimskip Academy platform which has been a success. We graduated the 5 class in our international leadership program and have graduated a total of 131 participants during the last three years, whereof 39 employees have advanced in their career post-graduation. Last fall, we launched the interactive Icelandic learning app “Bara tala”, which provides all non-native Icelandic speaking employees with an opportunity to learn and improve their Icelandic skills.

There is generally a solid outlook for the first quarter of 2025 although there is some looming uncertainty regarding the imminent US tariffs and ongoing Red Sea diversion on volume and international freight rates.

Finally, I'd like to express my gratitude to Eimskip's employees across our operations for their efforts throughout the year, demonstrating both resourcefulness and resilience, in providing excellent service to our customers in a highly dynamic environment“.

Investors and market participants are invited to a meeting on Wednesday, 5 February 2025, at 8:30 a.m. at the Company's headquarters, Sundabakki 2, second floor. The meeting will also be webcasted live in Icelandic at www.eimskip.com/investors. Vilhelm Már Thorsteinsson, CEO and Rósa Guðmundsdóttir, CFO, will present the Company's financial results for Q4 2024 and the financial year 2024. Investor presentation and a recording of the meeting will be available on the Company's investor relations website.

Rósa Guðmundsdóttir, CFO, tel: +354 844 4776, email: investors@eimskip.com.
Guðbjörg Birna Björnsdóttir, Head of Treasury and Investor Relations, tel: +354 844 4752, email:  investors@eimskip.com

Statements contained in this financial press release that refer to the Company's estimated or anticipated future results or future activities are forward-looking statements which reflect the company's current analysis of existing trends, information and plans. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially depending on factors such as the availability of resources, the timing and effect of regulatory actions and other factors. Eimskip undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.

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