American Shipper

Eimskip in the black

Eimskip in the black

   Icelandic shipping company Eimskipafelag Islands said it had a second quarter after-tax profit of 6.2 million euros ($8 million).

   The company, which underwent a financial restructuring last year following the financial crisis in Iceland, had reported a 214.5 million euro loss in the second quarter of 2009.

   Transport volume in Iceland for the quarter increased 11 percent from last year, the first increase since early 2008, the company said. But it added its transport in general has decreased significantly, showing similar volumes as in 2000.

   Eimskip undertook a complete restructuring in 2009. As a part of that process, creditors and new investors took over the transportation operation on Oct. 1, 2009, including the U.S. investment fund Yucaipa which Eimskip said in May owns 32 percent.

   “Despite the difficult operational environment, Eimskip has managed to turn the company's returns to black figures,' said Gylfi Sigfusson, president and chief executive officer. 'The company has been adjusted to the changed market environment, and the benefit of that can be seen in the results now.

   “In the last few years, Eimskip has not devoted large numbers into transport related investments. The cash balance is strong and the company is ready for asset renewals. It is important for Eimskip to maintain its core business, the North Atlantic transport system, to ensure dependable and good service to its customers.”

   Eimskip’s liner services include three services to Europe and a monthly container service between Iceland and North America that calls at the ports of Richmond, Va.; Boston; Halifax, Nova Scotia; and Argentia, Newfoundland. ' Chris Dupin