2003 - Growth at home and abroad

4.3.2004

Samskip recorded a post-tax profit of ISK 366 million in 2003, a rise of ISK124 million from the previous year's figure of ISK 242 million. Total revenues of the company and its subsidiaries amounted to ISK 17.3 billion, an increase of ISK3.2 billion, or 23%, from 2002. About half of total turnover derived from operations outside Iceland. Operating income before depreciation rose by almost ISK 512 million between the years to reach just under ISK582 million, compared with ISK70 million in 2002.

A good year all round

2003 proved a good year for Samskip operations, with significant improvements seen in almost all areas of the company's activities. The year saw a significant increase in the volume of imports to Iceland, with Samskip more than succeeding in maintaining its market share. Major contracts were concluded with new customers, while car imports were also well up on their 2002 level.

Exports also rose, despite unfavourable market conditions, and there was a major growth in traffic volume at the company's domestic transport division, Landflutningar-Samskip, due not least to a major increase in business in east Iceland deriving from the Kárahnjúkar hydropower project. A significant turnaround in fortunes was also experienced at subsidiary Jonar Transport, which reversed its losses of 2002 to return a healthy profit.

Systematic efforts continued toward expanding Samskip's global operations, and the company succeeded in significantly strengthening its position in transport markets in the North Sea and Baltic, where its fleet servicing scheduled routes grew from two to nine. At the same time, the purchase of an 80% share in Dutch short-sea and rail transport operator Van Dieren Maritime BV proved of major benefit in strengthening Samskip's market position in the Benelux region and mainland Europe, while the opening of sales offices in South Korea and China achieved the same on a global scale.

Ahead lies a period of continued growth and expansion. Work is currently underway on the purchase of a transport operator in Moscow, along with the opening of a sales office in Astrakhan designed to further strengthen Samskip's presence in the Caspian Sea market.

At year-end 2003 Samskip operated a fleet of 16 vessels on scheduled routes, along with several chartered vessels in use on special projects. Concerted growth has been a feature of the company's operations since 1990, and it now operates 31 sales offices in 14 countries, backed up by a global network of agents and sales representatives.

Development in domestic market

As in past years, efforts continued during 2003 towards improving Samskip services and operations in Iceland. These included the completion of the Ísheimar reefer bulk storage facility at the company's headquarters in Reykjavík, which is now one of the best of its kind found anywhere in the North Atlantic.

At the same time, work commenced on the building of a new 25,000m² headquarters and warehouse complex due to open at the end of this year, which will benefit both Samskip and its customers by bringing the company's domestic operation in Reykjavik under one roof for the first time.

During the year, a contract was signed for the construction of two new custom-built container liners to replace the Arnarfell and Helgafell, scheduled for completion in 2005. To meet the increased demand for capacity, it was also decided to add a new scheduled route linking Iceland and mainland Europe, and two chartered container vessels, the Skaftafell and Jökulfell, joined the Samskip fleet at the beginning of 2004.

At the end of 2003, Samskip shareholders totalled 390, three of whom owned a stake of more than 10% in the company. These are Ker hf. (49.15%), Mastur hf. (10.8%) and Olíuverslun Íslands hf. (10.32%). Samskip's AGM will be held today, March 4, in the Salur conference centre, Kópavogur.

Annual Report 2003 

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