Eimskipafélag Íslands (EIM) Q2 2024 earnings summary

Executive summary

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

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

• Net earnings for Q2 2024 fell 53.4% to EUR 7.9 million; H1 2024 net earnings were EUR 8.4 million.

• International Forwarding performed well, offsetting some liner segment weakness.

• Cash flow from operations improved to EUR 22.7 million, supported by working capital management.

Financial highlights

• H1 2024 revenue: EUR 405.5 million, down from EUR 424.1 million in H1 2023.

• H1 2024 EBITDA: EUR 37.7 million, down from EUR 66.2 million year-over-year.

• Q2 2024 EBITDA: EUR 23.5 million, down from EUR 34.3 million YoY; EBITDA margin 11.2%.

• Q2 2024 EBIT: EUR 8.6 million, down 55.9% YoY; EBIT margin 4.1%.

• Q2 2024 net earnings: EUR 7.9 million, down from EUR 17.0 million YoY.

Outlook and guidance

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

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

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

• Trans-Atlantic volumes and rates have increased moderately and are expected to remain steady.

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