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

Offshore

Technip Samsung JV Wins 2 FLNG Project Contracts

The Browse project covers the realization and installation of three FLNG units to develop the Brecknock, Calliance and Torosa fields in the Browse Basin, 425 kilometers North of Broome,

Fjords Processing Bags Johan Sverdrup Contracts

Fjords Processing, headquartered in Norway (Fornebu), has won three contracts for the deliveries of process systems for the Johan Sverdrup development in the North Sea.

Ocean Safety, Richard Irvin Marine Safety Merger

Ocean Safety has today announced the merger with Richard Irvin Energy Solutions Marine Safety Division and their Aberdeen branch.   This merger follows the

Finance

Grimaldi Orders Three PCTCs

After signing an order for the construction of five new ships two weeks ago, the Italian shipowner  Grimaldi Group has signed another contract for the construction

Caltex Replaces Australian Crew

The 36 Australian crew members of an Caltex tanker refusing to set sail after they were told their jobs would be gone after the next run. MR tanker Alexander Spirit (40,

Teekay LNG Partners Declares Distribution

Teekay GP LLC, the general partner of Teekay LNG Partners L.P. has declared a cash distribution of $0.70 per unit for the quarter ended June 30, 2015. The cash distribution is payable on August 14,

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Ship Repair Ship Simulators Sonar
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: 0.1311 sec (8 req/sec)