Financial Performance

KEY FIGURES
Amounts are in thousands of EUR

Record results in all business areas
Eimskip’s financial results of the year 2022 are record high and driven by emphasis on excellent customer service, operational focus and favorable market conditions for the greater part of the year. Good year for the liner services driven by high utilization of the sailing system based on good volumes in all trade lanes and active capacity management. International Forwarding operations performed well in a highly volatile market which saw a swift downturn in the latter half of the year. 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 11.4%, however, this same shortage maintained upwards pressure on prices for the first three quarters of the year, positively affecting Eimskip’s margins. On the other hand, the volume in Eimskip’s liner services grew by 4.1% from the previous year. The liner volume increase can mainly be attributed to increased economic activity in key markets, especially strong imports to Iceland and capacity increase on the Trans-Atlantic route. The reefer liner services performed well financially, despite some contraction in volume caused by the discontinuance of calling Murmansk following the Russian invasion of Ukraine, and due to the company’s decision to redirect one vessel to another trade lane during the summer, resulting in lower overall capacity.

Various internal initiatives and efforts serve as a vital contributor to the good operational performance of 2022. 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 1,070.6 million, compared to EUR 882.7 million the year before. EBITDA amounted to EUR 163.1 million, up from reported EBITDA of EUR 104.1 million in 2021, and EBIT was EUR 101.5 million, an increase from EUR 53.0 million in 2021. Net earnings for the year 2022 amounted to EUR 85.3 million, compared to EUR 40.4 million in 2021.

Financial Position and Capital Expenditure
Eimskip’s balance sheet at year-end 2022 remained solid, with assets amounting to EUR 666.7 million and a 46.4% equity ratio. Interest-bearing debt amounted to EUR 237.9 million at year-end, a decrease of EUR 28.9 million, where bank loans decreased by EUR 13.1 million and operational lease liabilities decreased by EUR 15.8 million. Net debt was EUR 164.9 million, or a decrease of EUR 61.1 million from the previous year. Net cash from operating activities amounted to EUR 148.5 million, an increase of EUR 72.3 million from 2021. The Company paid a dividend to shareholders amounting EUR 17.5 million, and a reduction in share capital was performed with a payment to shareholders amounting EUR 7.6 million. Two share buy-back programs were completed in the year where the Company acquired in total of 3,430,000 treasury shares with a total purchase price amounting EUR 12.6 million. Cash and cash equivalents amounted to EUR 69.9 million at year-end 2022.

Total capital expenditure, or CAPEX, amounted to EUR 33.9 million in 2022, of which maintenance CAPEX, including vessel dockings, was EUR 24.2 million.