Financial Performance

KEY FIGURES
Amounts are in thousands of EUR

Record results in all business areas
Eimskip’s financial results of the year 2021 are record high and driven by strong performance in the liner services as well as the international forwarding services. Both segments are affected by the unusual conditions in the global transportation markets. In the freight forwarding segment, shortage of space on vessels and available equipment has decreased volume by 4%; however, this same shortage has put upwards pressure on prices, which has increased Eimskip’s margin from each forwarding job substantially. On the other hand, the volume in Eimskip’s liner services grew by 4.8%. The liner volume increase can mainly be attributed to increased economic activity in key markets, capacity increase on the Trans-Atlantic route as well as acquisition of new customers, especially in the Trans-Atlantic services. Price development in the container liner business has also been favorable, thanks to increased internal focus on pricing strategies and revenue management, supported by development in market rates. The reefer liner services performed well financially, although volume was on similar level as the previous year.

Various internal initiatives and efforts serve as a vital contributor to the good operational performance of 2021. The streamlining and integration measures introduced and executed in 2019 and again in 2020, including employee reduction and decrease in office space, have permanently lowered the Group’s cost base, and agile revenue management has ensured improved profitability of the container sailing system. Eimskip’s focus on service excellence has been important to secure its strong position in a highly competitive market where customers’ expectations and demand for performing logistic solutions in today’s challenging operational environment have reached new heights.

Operational Results
Revenue amounted to EUR 882.7 million, compared to EUR 668.3 million the year before. Reported EBITDA amounted to EUR 104.1 million, up from EUR 61.7 million in 2020, and EBIT was EUR 53.0 million, an increase from EUR 17.1 million in 2020. Adjusted EBITDA and EBIT, adjusted for a EUR 10.2 million settlement with the Icelandic Competition Authority (ICA) expensed in Q2, was EUR 114.3 million and EUR 61.7 million, respectively. Net earnings as reported for the year 2021 amounted to EUR 40.4 million, compared to EUR 4.5 million in 2020.

Financial Position and Capital Expenditure
Eimskip’s balance sheet at year-end 2021 remained solid, with assets amounting to EUR 634.3 million and a 41.2% equity ratio. Interest-bearing debt amounted to EUR 266.8 million at year-end, an increase of EUR 41.7 million, where bank loans decreased by EUR 14.1 million but operational lease liabilities increased by EUR 55.8 million due to higher charter rates of vessels and longer terms. Net debt was EUR 225.8 million, or an increase of EUR 20.7 million from the previous year. Net cash from operating activities amounted to EUR 75.6 million, an increase of EUR 26.0 million from 2020, despite a one-off payment of EUR 10.2 million settlement to the Icelandic Competition Authority (ICA). The Company paid a dividend to shareholders amounting EUR 3.0 million, and a reduction in share capital was performed with a payment to shareholders amounting EUR 11.2 million. Cash and cash equivalents amounted to EUR 37.0 million at year-end.

Total capital expenditure, or CAPEX, amounted to EUR 15.4 million in 2021, of which maintenance CAPEX, including vessel dockings, was EUR 13.1 million. CAPEX in 2020 amounted to EUR 52.7 million mostly due to final payments on delivery of the new vessels Dettifoss and Bruarfoss.