Eimskipafélag Íslands (EIM) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was EUR 209.6m, flat year-over-year, with liner revenue down EUR 12.9m and forwarding revenue up EUR 13.0m.

• EBITDA dropped 31.6% to EUR 23.5m, mainly due to lower Trans-Atlantic rates, a four-week strike in the Faroe Islands, and softened Icelandic imports.

• Net earnings for H1 2024 were EUR 8.4m, down 53.4% YoY, with Q2 net earnings at EUR 7.9m.

• International Forwarding performed well, offsetting some liner segment weakness, and benefited from higher global freight rates.

• The company completed a share buy-back and paid a EUR 24.8m dividend in H1 2024.

Financial highlights

• H1 2024 revenue: EUR 405.5m, down from EUR 424.1m in H1 2023; Q2 revenue: EUR 209.6m (flat YoY).

• H1 2024 EBITDA: EUR 37.7m, down from EUR 66.2m YoY; Q2 EBITDA: EUR 23.5m, down from EUR 34.3m YoY; EBITDA margin 11.2%.

• H1 2024 EBIT: EUR 7.7m, down from EUR 35.2m YoY; Q2 EBIT: EUR 8.6m, down 55.9% YoY; EBIT margin 4.1%.

• H1 2024 net earnings: EUR 8.4m, down from EUR 29.5m YoY; Q2 net earnings: EUR 7.9m.

• Q2 2024 basic EPS: EUR 0.0470; H1 2024 basic EPS: EUR 0.0501.

Outlook and guidance

• Solid Q3 performance expected, with weak vehicle imports to Iceland but robust foodstuff and general cargo.

• Export outlook from Iceland is positive, with stable quotas and increased salmon harvesting.

• Faroe Islands and Norway expected to see stable or increased export volumes.

• Global shipping markets remain volatile due to Red Sea disruptions and economic rebounds, keeping rates high.

• Eimskip remains focused on cost control and sustainable growth, leveraging its strong North Atlantic position.