Eimskip’s net earnings tumble in 2017 amid higher revenues

Although adverse currency exchange fluctuations caused Eimskip’s net earnings to tumble between 2016 and 2017, revenues surged, thanks to new acquisitions, volumes growth and increased international freight rates.    Eimskip posted net earnings of 16.8 million euros (U.S. $20.7 million) for 2017, a decrease of 23.3 percent from 2016, according to the Icelandic shipping company’s latest financial statements.
   The sharp decline mainly resulted from adverse currency exchange fluctuations of 5.8 million euros year-over-year, Eimskip President and CEO Gylfi Sigfússon explained.
   However, earnings before interest taxes depreciation and amortization (EBITDA) totaled 57.2 million euros for 2017, up 7 percent from the prior year. Meanwhile, revenues for 2017 reached 664 million euros, up 29.2 percent year-over-year, which Sigfússon attributed to new acquisitions, volumes growth and increased international freight rates.
   Liner services revenues reached 438.4 million euros, while forwarding services revenues totaled 225.6 million euros, year-over-year increases of 15.3 percent and 68.8 percent, respectively.
   In addition, volumes in liner services ticked up 3.6 percent from 2016, while volumes in forwarding services skyrocketed 41.2 percent.
   Looking ahead, Eimskip projects its EBITDA will total between 60 million euros and 65 million euros for 2018.
   Eimskip said it “continues to work on strategic accretive acquisitions to increase shareholder value,” adding that it’s “currently working on potential acquisitions in its core markets.”
   Eimskip currently operates 22 vessels – 13 owned and nine chartered – and has approximately 1,850 employees.