Eimskip plans more acquisitions as earnings climb

Eimskip plans more acquisitions as earnings climb

Eimskip's most recent acquisitions focused on the Nordic and reefer logistics markets.

Eimskip said it is eyeing fresh acquisitions as the Icelandic shipping and logistics group posted its best third quarter since 2009.

Earnings before interest, tax, depreciation, and amortization surged 23.3 percent to 17.8 million euros ($19 million) from 14.4 million euros a year earlier, and net earnings grew almost 11 percent to 9.4 million euros.

Revenue climbed a modest 3.4 percent to 134.1 million euros as higher shipping turnover — driven by a 6.8 percent increase in North Atlantic liner traffic — was offset by lower forwarding revenue owing to sliding freight rates and lower volumes from China.

“The company continues to deliver good results, and this is our best third quarter in terms of revenue, EBITDA, EBIT, and net earnings since 2009,” said Gylfi Sigfusson, president and CEO of Eimskip.

“It remains our intention to grow organically and through strategic accretive acquisitions to increase shareholder value.”

“We continue to evaluate additional acquisitions and vessel investments on an ongoing basis and are currently working on a few options.”

Eimskip has been on the acquisition trail in the current quarter, with a 15-million-euro cash purchase of Nor Lines, a 110-million-euro-per-year Norwegian shipping and logistics company, in early November. That followed the mid-October acquisition of a 90 percent stake in Extraco Internationale Expeditie, a Dutch reefer logistics firm.

The company in May signed a capacity-sharing agreement with Greenland’s Royal Arctic Line to invest in and operate ships designed and built for special weather conditions in the North Atlantic and the Arctic. The new vessels, to be delivered within two to three years, will connect Iceland and Greenland with Scandinavia, Europe, and North America.

“The outlook of the operations in the fourth quarter is good, the month of October is according to our expectations, and volume in the company’s systems for the first two weeks of November is also in line with our expectations,” Sigfusson said.

Eimskip has upgraded its full-year EBITDA forecast to between 52 million euros and 55 million euros from 49 million euros to 53 million euros previously.

Contact Bruce Barnard at brucebarnard47@hotmail.com.