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 October 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds


The Digital Oilfield Microwave Communication Offshore Brazil

With most offshore wells in Brazil located between 30 and 300 km from the coast, communication with offshore assets has not always been straightforward or reliable.

Fugro to Survey off Equatorial Guinea

Fugro has been awarded a contract by Ophir Equatorial Guinea (Block R) Limited for the provision of survey services for the development of large scale assets and

Wärtsilä Sternguard In-Water Serviceable Seal Launched

Wärtsilä, the marine and offshore industry's leading solutions and services provider, introduces an innovative new seal that can be fully serviced underwater, without setting up a habitat.


NY/NJ Port Authority Sees Debt Issuance of $1.2 bln in 2016

The Port Authority of New York and New Jersey sees consolidated debt issuance of $1.2 bln in 2016 compared with $1.5 bln this year, according to its $7.9 billion 2016 budget released on Monday.

Opportunities for Growth as Chinese Economy Evolves

The global breakbulk and heavy-lift markets have had to navigate choppy waters in recent years.   Not necessarily due to a shortage of freight, but as a consequence of unsustainably low freight rates.

EuronavSells Suexmax Cap Laurent

Euronav NV announced the sale of its Suezmax Cap Laurent for $22.25 million. The 1998-built 146,145-dwt vessel was wholly owned by Euronav.    The vessel was

Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Navigation Offshore Oil Salvage Shipbuilding / Vessel Construction Sonar 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: 0.0830 sec (12 req/sec)