The Icelandic shipping company’s net earnings totaled 8.8 million euros for the quarter, down 6.3 percent from the third quarter of 2016 due to adverse currency exchange fluctuations, but operating revenues shot up 32 percent to 177 million euros.
Eimskip recorded net earnings of 8.8 million euros on operating revenues of 177 million euros for the third quarter of 2017.
Icelandic shipping company Eimskip reported net earnings of 8.8 million euros (U.S. $10.4 million) for the third quarter of 2017, falling 6.3 percent from the third quarter of 2016, primarily reflecting adverse currency exchange fluctuations of 1 million euros, according to the company’s most recent financial statements.
Operating revenues for the third quarter of 2017 totaled 177 million euros, skyrocketing 32 percent year-over-year, which Eimskip President and CEO Gylfi Sigfússon attributed to volumes growth, increased freight rates and new acquisitions.
Eimskip has made various acquisitions throughout 2017, acquiring 80 percent of the Antwerp-based forwarding company Mareco N.V. in January; a 51 percent stake in Boston-based seller and lessor of containers, CSI Group, LLC, in March; and 75 percent of Danish freight forwarding company SHIP-LOG A/S in June.
During the third quarter, Eimskip signed a stevedoring contract with the silicon metal production plant PCC Bakki Silicon in Húsavík, in the north of Iceland, for the operation of a terminal related to the plant.
Just this month, Eimskip inked a deal with GAMMA Capital Management to establish the inventory financing company Krít ehf.
“With the agreement, Eimskip is opening up new opportunities for customers of value added services by connecting logistics services with inventory financing,” Eimskip said.
Looking ahead, Eimskip is planning on increasing its presence on the transatlantic trade.
“As a part of its organic growth strategy, Eimskip will further strengthen its transatlantic services by offering new weekly services between Northern Europe and North America,” Sigfússon said. “The third vessel has been added to the Green Line as from week 47. Eimskip’s Trans-Atlantic volumes are three times larger than they were in 2009, and in 2017, volumes are up 33 percent. This volume growth, together with a new short-sea agreement with the international shipping company CMA CGM between Halifax, Nova Scotia and Portland, Maine in the U.S., creates foundation for the weekly services.”
Meanwhile, Eimskip is set to acquire three buildings at its terminal in Reykjavík, Iceland in 2019 that it has been leasing from the Nordic Investment Bank since 2009. Eimskip’s 8.3 million euro payment for the assets, along with the transfer of ownership will take place in mid-2019.
Founded in 1914, Eimskip currently runs a network of 63 offices in 20 countries with about 1,830 employees. The company operates 22 vessels – 13 owned and nine chartered. Fifteen of the vessels are in scheduled services, three are in spot services, three are in ferry operation, and one is used for bulk cargo.