Eimskip Braces for Negative First-Half Returns

Wednesday, June 06, 2001
Iceland's largest shipping company Eimskip warned on Wednesday that rising costs and ballooning foreign exchange losses would have a "very negative effect" on its first-half results.

Eimskip said in a statement operating conditions in the first four months of the year had been extremely unfavorable.

"Although the company's operating income in this period was in line with schedule, recent increases in domestic and foreign costs, as well as huge exchange rate losses from foreign loans, will have a very negative effect on the outcome for the first half of the year," the company said in a statement.

Eimskip said it had made a net loss in the first four months of the year of about 1.2 billion crowns ($11.5 million). Foreign exchange losses in the period totaled 1.5 billion crowns - a comparable burden to that shouldered in the whole of 2000.

In May, foreign exchange losses increased even further, it said. The Iceland crown has weakened more than 24 percent against the U.S. dollar since the start of 2001, hit by the central bank's decision to end exchange rate targeting and a fishermen's strike.

"Normally the weakening of the Icelandic crown leads to increased revenues, since a large part of the company's income is derived from foreign currencies. However, this was now counterbalanced by lower exports caused by a long-term fishermen's strike and by a decrease in some fields of import, such as cars," Eimskip said.

"A continuous drop in the domestic stock market this year has furthermore had negative effect on the outcome of the investment operation," the company added.

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter April 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

Shipping Industry Flying On The Dragon’s Back

As the many Greek players in the shipping industry know well, the legend of Icarus tells us the dangers of flying too high. Merchant vessel earnings eventually

Subsea 7 Profits Dip in Q1

Subsea 7 S.A. announced its financial results for the first quarter ending March 31, 2016, reporting revenues of $746 million, down 37 percent from the prior year period.

Sembcorp Profit Halved as Clients Defer Projects

Revenue falls 30 pct; order book at S$9.7 billion. Singapore rig-builder Sembcorp Marine's quarterly profit halved as customers deferred projects, and it faces

Finance

Shipping, Key Ingredient of EU’s Africa Agenda

The African economy has become one of the most promising global growth markets. Shipping is taking care of the largest part of international trade and in Africa

Ocean Economy Set to Double in Size by 2030

The world’s oceans must be managed well to ensure the potential of an “ocean economy” that was worth US $ 1.5 trillion in 2010.   "Calculations based on the

Chevron Suffers Loss, Plans Job Cuts

Chevron Corp. reported a first-quarter loss as slumping oil prices continued to drag down revenue. The company said that it is "on target" to lay off a total of 8000 workers by the end of 2016,

 
 
Maritime Contracts Maritime Security Maritime Standards Navigation Pipelines Pod Propulsion Ship Electronics Ship Repair Ship Simulators Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0851 sec (12 req/sec)