Eimskip reports strong Q2 earnings increase

The Icelandic shipping company reported net earnings of 5.5 million euros on operating revenues of 126.6 million euros for the second quarter of 2015.    Eimskip reported net earnings of 5.5 million euros (U.S. $6.18 million) for the second quarter of 2015, a year-over-year increase of 20.1 percent.
   Operating revenues posted a year-over-year increase of 16.2 percent to 126.6 million euros for the quarter.
   Earnings before interest, taxes, depreciation and amortization (EBITDA) stood at 13.3 million euros for the quarter, a year-over-year increase of 20.4 percent. Eimskip attributed the sharp increase to volumes growth on liner services, currency exchange fluctuations and investments in new forwarding companies.
   The Icelandic shipping company’s North Atlantic liner services transported 6.9 percent more volumes in the second quarter in comparison to the second quarter of 2014, with strong volumes growth to and from Iceland. In addition, growth in Norway for the second quarter was strong despite a rough first quarter, which Eimskip attributed to bad weather and catch failure. However, transport to and from the Faroe Islands was down for the quarter in comparison to last year’s second quarter.
   The company’s reefer forwarding services division posted a year-over-year volume increase of 20.5 percent, which resulted from increased activities in Newfoundland and the Netherlands.
   Eimskip said its liner system has transported higher than expected volumes so far for the third quarter. In addition, the Icelandic shipping company improved its 2015 EBITDA forecast to a range between 41 million euros to 45 million euros in comparison to Feb. 2015, when it projected the EBITDA forecast for the year would be between 39 million euros to 44 million euros.
   Eimskip operates from 55 offices across 19 countries, with half of its operating revenue from operations outside of Iceland. The carrier operates with a fleet of 16 vessels, 12 of which are owned and four of which are chartered.