Key Financial Highlights
KEY FIGURES
Amounts are in thousands of EUR
| Consolidated Income Statement | 2017 | 2016 | Change | 2015 | 2014 | 2013 | ||||||
| Revenue | 663,973 | 513,922 | 29.2% | 499,581 | 451,555 | 433,824 | ||||||
| Expenses | 606,775 | 460,447 | 31.8% | 454,384 | 413,013 | 396,770 | ||||||
| Operating profit - EBITDA | 57,198 | 53,475 | 7.0% | 45,197 | 38,542 | 37,054 | ||||||
| Depreciation and amortization | (30,148) | (28,077) | (7.4%) | (24,729) | (23,195) | (21,143) | ||||||
| Results from operating activities - EBIT | 27,050 | 25,398 | 6.5% | 20,468 | 15,347 | 15,911 | ||||||
| Net finance (expense) income | (7,236) | (345) | - | 419 | 591 | (3,234) | ||||||
| Share of (loss) earnings of equity-accounted investees | (339) | 210 | - | 331 | 229 | 2 | ||||||
| Net earnings before income tax | 19,475 | 25,263 | (22.9%) | 21,218 | 16,167 | 12,679 | ||||||
| Income tax | (2,671) | (3,368) | 20.7% | (3,416) | (2,560) | (1,862) | ||||||
| Net earnings for the year | 16,804 | 21,895 | (23.3%) | 17,802 | 13,607 | 10,817 | ||||||
| Earnings per share in EUR | 0.0885 | 0.1148 | (22.9%) | 0.0929 | 0.0722 | 0.0554 | ||||||
| Revenue change | 29.2% | 2.9% | 10.6% | 4.1% | 2.4% | |||||||
| EBITDA ratio | 8.6% | 10.4% | 9.0% | 8.5% | 8.5% | |||||||
| EBIT ratio | 4.1% | 4.9% | 4.1% | 3.4% | 3.7% | |||||||
| Net debt / EBITDA | 1.80 | 0.78 | 0.78 | 0.65 | 0.89 | |||||||
| Consolidated Statement of Financial Position | 31.12.2017 | 31.12.2016 | Change | 31.12.2015 | 31.12.2014 | 31.12.2013 | ||||||
| Assets | 459,515 | 391,691 | 17.3% | 355,157 | 332,040 | 314,365 | ||||||
| Non-current assets | 313,529 | 253,256 | 23.8% | 233,280 | 214,278 | 216,096 | ||||||
| Current assets | 145,986 | 138,435 | 5.5% | 121,877 | 117,762 | 98,269 | ||||||
| Equity | 244,610 | 243,775 | 0.3% | 228,124 | 216,472 | 205,771 | ||||||
| Liabilities | 214,905 | 147,916 | 45.3% | 127,033 | 115,568 | 108,594 | ||||||
| Non-current liabilities | 117,614 | 64,456 | 82.5% | 55,550 | 49,904 | 44,436 | ||||||
| Current liabilities | 97,291 | 83,460 | 16.6% | 71,483 | 65,664 | 64,158 | ||||||
| Interest-bearing debt | 125,984 | 81,149 | 55.3% | 71,401 | 64,432 | 59,398 | ||||||
| Net debt | 102,815 | 41,606 | 147.1% | 35,418 | 24,893 | 33,028 | ||||||
| Tangible assets / Total assets | 85.4% | 89.4% | 92.6% | 94.2% | 93.5% | |||||||
| Equity ratio | 53.2% | 62.2% | 64.2% | 65.2% | 65.5% | |||||||
| Consolidated Statement of Cash Flows | 2017 | 2016 | Change | 2015 | 2014 | 2013 | ||||||
| Net cash from operating activities | 37,420 | 48,667 | (23.1%) | 37,357 | 31,603 | 20,537 | ||||||
| Net cash used in investing activities | (75,139) | (39,907) | (88.3%) | (35,206) | (18,311) | (26,601) | ||||||
| Net cash provided by (used in) financing activities | 22,581 | (4,761) | - | (5,173) | (572) | (3,558) | ||||||
| Changes in cash and cash equivalents | (15,138) | 3,999 | - | (3,022) | 12,720 | (9,622) | ||||||
| Effects of exchange rate fluctuations on cash held | (1,236) | (439) | (181.5%) | (534) | 449 | (1,312) | ||||||
| Cash and cash equivalents at year-end | 23,169 | 39,543 | (41.4%) | 35,983 | 39,539 | 26,370 |
KEY RATIOS
Revenue
EUR million
EBITDA
EUR million
NET DEBT / EBITDA
Revenue by quarter
EUR million
EBITDA BY QUARTER
EUR million
NET DEBT AND EQUITY RATIO
EUR million
KEY HIGHLIGHTS
| EUR million | 2017 | 2016 | Change | ||
| Revenue | 664.0 | 513.9 | 29.2% | ||
| EBITDA | 57.2 | 53.5 | 7.0% | ||
| EBIT | 27.1 | 25.4 | 6.5% | ||
| Net earnings | 16.8 | 21.9 | (23.3%) | ||
| CAPEX | 61.9 | 34.4 | 79.9% | ||
| Net cash from operating activities | 37.4 | 48.7 | (23.1%) | ||
| Total assets | 459.5 | 391.7 | 17.3% | ||
| Equity ratio | 53.2% | 62.2% |
A year of growth
The year 2017 can be described as “the year of growth” for Eimskip, where volume, revenue and EBITDA were record high. The year was great for the forwarding services, with new companies added to the Group and solid organic growth. The Company’s liner services faced some operational challenges that negatively affected EBITDA, such as the fishermen strike in Iceland at the beginning of the year and volume imbalance between imports and exports in Iceland.
Transported Volume and Sailing System
There was volume growth of 3.6% in the Company’s North Atlantic liner services from 2016 to 2017, mainly due to good growth in imported volume to Iceland and in Trans-Atlantic volumes, while there was some reduction in export volumes from Iceland and the Faroe Islands. Transported volume in the Company’s forwarding services grew by 41.2% from the previous year, where 29.2% came from new Group companies and 12.0% was organic growth.
In 2017, Eimskip continued investment in the future of its container liner services and has reached its goal of weekly service on all sailing routes. Over the last three years, the Company has added three vessels to its sailing system, adding 35% to the system capacity. During the same period, the transported volume increased by 32%. The added capacity and frequency in the sailing system creates the opportunity to attract new customers and increase future revenue.
Operational Results
Eimskip’s net earnings amounted to EUR 16.8 million in 2017, decreasing by EUR 5.1 million, or 23.3%, from 2016, mainly reflecting EUR 5.8 million adverse year-on-year currency exchange fluctuations.
Revenue amounted to EUR 664.0 million, compared to EUR 513.9 million in 2016. The revenue increase is mainly explained by new acquisitions, volume growth and increased international freight rates. Of the 2017 revenue, 66.0% came from the liner services and 34.0% from forwarding services.
Expenses for the year amounted to EUR 606.8 million, up by 31.8%. Thereof, salaries and related expenses amounted to EUR 135.6 million, up by 13.2%, mainly affected by currency exchange difference.
Operating profit, or EBITDA, amounted to EUR 57.2 million compared to EUR 53.5 million in 2016, up by 7.0%. Operational challenges related to the strike of Icelandic fishermen and the imbalance in transported volumes to and from Iceland negatively affected EBITDA for the first half of the year. The EBITDA ratio for the year was 8.6% compared to 10.4% in 2016.
Financial Position and Capital Expenditure
Eimskip’s balance sheet at year-end 2017 remained solid, with assets amounting to EUR 459.5 million and 53.2% equity ratio. Interest-bearing debt amounted to EUR 126.0 million at year-end, up by EUR 44.8 million, and net debt was EUR 102.8 million, up by EUR 61.2 million from the previous year.
Net cash from operating activities amounted to EUR 37.4 million and decreased by EUR 11.2 million or 23.1% from the previous year. Dividend in the amount of EUR 10.6 million, or ISK 1,269.1 million, was paid to shareholders in April 2017. Cash and cash equivalents amounted to EUR 23.2 million at year-end.
Total capital expenditure, or CAPEX, amounted to EUR 61.9 million in 2017. Thereof EUR 23.6 million was maintenance CAPEX, including vessel dockings. The largest investments were the building project of two 2,150 TEU container vessels in China, the vessel Selfoss and three buildings in Sundahöfn, Reykjavík. For comparison, CAPEX in 2016 amounted to EUR 34.4 million, whereof maintenance CAPEX was EUR 23.8 million, including vessel dockings. Net acquisitions in new companies were EUR 18.4 million in 2017 compared to EUR 11.3 million in the previous year.