Samskip's profit grew by over 90% in 2004

9.3.2005

Samskip's income has doubled since 2000 and, with the exception of 2002, the company has grown steadily. Over half of last year's income came from the company's operations abroad, with income from domestic operations also increasing substantially. Samskip's total assets at year-end 2004 amounted to ISK 8.1 billion (bn). Equity at year-end was ISK 2.7 bn, increasing by ISK 457 m since the beginning of the year, and the equity ratio 33.4%. The company's current ratio for 2004 was 1.17 and cash and cash equivalents from operations ISK 1,256 m, as compared to ISK 946 m for 2003.

The company's investments have primarily been in connection with the building of new headquarters and equipment renewal. At present, Samskip is in the process of acquiring a foreign transport operation, which is to be partially financed by new share capital. A motion to this effect was moved at Samskip's AGM, held at 5:00 pm, on 8 March, in the company's conference hall in its new headquarters on Kjalarvogur in Reykjavík.

Samskip Annual Report 2004

Best operating outcome in Samskip's history

Samskip's activities in 2004 were characterised by major growth. 

The company's transport of exports from Iceland grew considerably more than anticipated, with imports also increasing substantially. The major factors here were increased automobile imports and transport in connection with heavy industrial projects in East Iceland. Bulk transport was up last year and domestic operations stable. The performance of the company's subsidiary, Jónar Transport, last year was the best since it was established in 2000. 

Extensive effort went into consolidating and improving Samskip's operations in Iceland. All activities in the capital area, for instance, have now been transferred to the new Kjalarvogur headquarters, where the company's head office and warehouse centre, Landflutningar and Jónar Transport are now all under one roof. The number of vessels sailing between Iceland and Europe has been increased and scheduled service introduced to the Faroe Islands, which are now part of Samskip's home market. Reflecting Samskip's growing operations in Iceland, the position of managing director for domestic transport was created, reinforcing the company's executive arm.

The company's operations abroad grew most markedly in Northern Europe in 2004, with new offices opened in Scotland, England and the Ukraine and two in Germany, plus an office in China. Samskip took over operations of the Dutch transport company Nedshipping Liner Agencies BV at the beginning of 2004 and in February its subsidiary Van Dieren Maritime took over operations of goods transport by rail between Sweden and Germany. Samskip's subsidiary TECO Lines AS added additional port calls to its Finland services.

Major changes are ahead for Samskip's activities abroad in the wake of the company's acquisition of the Dutch transport company Geest North Sea Line¸ announced this past week. The acquisition, plus organic growth, is expected to almost double Samskip's annual turnover, which is forecast to amount to some ISK 45 bn in 2005. Geest will be operated as a Samskip subsidiary and will be one of the largest intra-European container transport services.

The acquisition of Geest brings Samskip's total transport capacity to around 800,000 container units annually. The group will have 24 vessels on scheduled sailing routes plus an additional 15 in special projects, including reefer transports, as well as a large number of chartered vessels on contract projects. The number of its employees will increase by around 20% to close to 1,200, with around 500 of them working abroad. The company will acquire an additional 12 offices, making a total of 45 in 19 countries, plus its agents throughout the world.

The Samskip group is comprised of the parent company, Samskip hf., plus 17 subsidiaries. At year-end 2004 its shareholders numbered 224, as compared to 390 at the beginning of the year. Three shareholders held over 10% of issued share capital at year-end: Ker hf (55.8%), Mastur hf (10.8%) and Olíuverslun Íslands hf (10.32%).

For further information contact Samskip's CEOs:

Knútur G. Hauksson, tel. +354 858 8500

Ásbjörn Gíslason, tel. +31 610 917 145

Send