- Asset write-down related to Innovate and high finance costs
- Revenue growth and EBITDA in line with expectations
- Transportation business performance in line with expectations
- Continued strong contribution from Versacold Atlas
Reykjavik, Iceland 19 June 2008 - Hf. Eimskipafelag Islands (OMX: HFEIM), the
international transportation company, today announced results for Q2 ended 30
April 2008. Today's results include the write-off related to Innovate Holdings
in the UK, announced on June 11th 2008. Innovate's financials are reported as
discontinued operations in the financial statements attached.
Highlights
•Total revenue in the second quarter increased by 46.3% to EUR 379.9 million,
reflecting strong performance in transportation services in the Baltic and
Russian regions, in addition to continued solid performance in the US, Canada
and the North-Atlantic region. Underlying Group revenue for the quarter
increased by around 8%. Revenues from Versacold Atlas are in line with
expectations. Revenue from Shipping Services was EUR 153.5 million and EUR
226.0 for Logistics Services
•Operating expenses totalled EUR 370.5 million in Q2.
•EBITDA in Q2 was EUR 40.0 million, representing an 11.2% EBITDA margin.
•Finance cost of EUR 52.5 million in Q2 2008, including negative currency
impact of EUR 19.7 million.
•A net loss of EUR 100.8 million was recorded in the Q2, compared to a EUR 9.8
million loss in Q2 2007. The loss excluding the write-off of Innovate is EUR
32.9 million.
•The board of directors has announced its intention to review strategic
alternatives for Versacold Atlas to enhance shareholder value and significantly
reduce the Group's debt.
Eimskips President & CEO, Gylfi Sigfusson, commented:
“The second quarter was another solid quarter in revenue growth and margins,
and was in line with our expectations. We saw a strong performance from our
core transportation businesses in Russia, and the Baltic and North-Atlantic
regions, as well as solid performances from our cold store business in the US
and Canada.
Despite the strong underlying performance of our business, the write-off
related to Innovate in the UK had a significant impact on our bottom line,
which negatively impacted our financing costs. The Board of Eimskip has
announced its intention to significantly improve Eimskip's financial strength
before year-end and will evaluate strategic alternatives for Versacold Atlas.
We are committed to bring our equity ratio above the 25% mark by the end of the
year. This will lead to the underlying aspects of our business to become more
visible and lower finance costs.”
