Profits increase between years.
Key numbers and results for Q1
The Company estimates that the EBITDA in 2018 will range from 2,800-3,000m ISK and that investments will range from 750-850m ISK.
Skeljungur hf.'s Q1 accounts for 2018 were approved by the Board of Directors and the CEO at a board meeting on May 8th, 2018. The Q1 accounts contain the consolidated annual accounts of the company and its subsidiaries and are prepared in accordance with International Financial Reporting Standards (IFRS). The Q1 accounts have neither been audited nor reviewed by the company's auditors, KPMG ehf. For further information please find the accounts enclosed.
Key figures
| 2018 | 2017 | ||
| m. ISK | Q1 | Q1 | % |
| Margin | 1.746 | 1.660 | 5,0% |
| EBITDA | 815 | 627 | 30,0% |
| EBIT | 617 | 437 | 41,1% |
| Profit | 416 | 255 | 62,8% |
| EBITDA | 46,7% | 37,8% | |
| EBIT | 35,3% | 26,3% | |
| Salary costs/margin | 26,3% | 28,8% | |
| Sales and distrib. costs/margin | 28,6% | 26,3% | |
| Operating costs/margin | 62,0% | 63,8% | |
| Return on equity | 22,6% | 14,8% |
Outlook for 2018
On April 24, the Company sent out a positive profit warning, where the EBITDA guidance for 2018 was raised. Previous EBITDA guidance ranged from 2,600-2,800m ISK and CAPEX guidance ranged from 750-850m ISK. Information which emerged from the preparation of the Q1 accounts and updated forecast for 2018 indicated that the overall results of the year would be better than anticipated. The main reason for improved results in Q1 were better results from fuel sales in Iceland, the Faroe Islands and from international sales, as well as one-off profit of 103m ISK due to updated asset price on one of the Company's assets.
The Company estimates that the EBITDA in 2018 will range from 2,800-3,000m ISK and that investments will range from 750-850m ISK.
The Company's guidance assumes stable exchange rates and stable oil prices. It is pointed out that in the translation of the financial statement, an average exchange rate over the year is used. In the budget for 2018 a fixed rate of DKK/ISK 16.45 is assumed.
Interim report for Q1
Hendrik Egholm, CEO of Skeljungur:
We are happy with the results in Q1. Operations are going well in Iceland, the Faroe Islands and in the North Atlantic. Sales are increasing in all grades except jet fuel, traffic is increasing and the fishing industry's operations in Q1 are more extensive than same time last year, but then a seamen strike affected a big part of the quarter.
It is positive to see that the changes we made last fall have resulted in better financial results. The new structure, with combined efforts of our sales teams has also had a positive effect and among other things led to increased sales and better results from international sales. It is also positive to see the effects of the re-financing, looking at the Company's financial items.
Whilst keeping our eyes on constantly improving our operations, we also look to the future. In April the Company informed of a purchase of a 70% share in Demich P/F, which offers environmentally friendly house heating solutions in the Faroe Islands. The purchase is pending the competition authorities' approval. Oil is the main energy source in house heating in the Faroes, where the Company has ca. 50% market share. Environmentally friendly solutions are a small but growing segment in the Faroese house heating market. With the purchase in Demich the Company can offer complete services to companies and consumers, independent of what energy solution the customer chooses. In Iceland we are also well on our way with preparing for the opening of our hydrogen stations. We look very much forward to introducing the hydrogen concept in the coming months.
Skeljungur is doing well both financially and operationally and is it our ambition to ensure the Company's prosperity also in the future.
Investor meeting
Skeljungur will host an open meeting for investors, analysts and the press on Wednesday, May 9 at 8:30 am at Hilton Reykjavik Nordica hotel, Suðurlandsbraut 2, 108 Reykjavík, in meeting room I. Light refreshments will be served from 8:15 am. CEO Hendrik Egholm and CFO Benedikt Ólafsson will give an overview of the financial results and operational highlights and answer questions from attendees.
The presentation is enclosed and a recording from the meeting will be available on Skeljungur's website after the meeting.
Financial Calendar 2018
Second Quarter Results 2018 August 28, 2018
Third Quarter Results 2018 October 30, 2018
Financial calendar is subject to change.
For further information please contact Hendrik Egholm, CEO, investors@skeljungur.is, tel: 444-3000 / 840-3002.
Skeljungur is an energy company which sells products and services in Iceland, the Faroe Islands and in the N-Atlantic. Skeljungur's main activities are import, storage, sales and distribution of fuel and fuel related products. The Company operates 76 gas stations and 6 oil depots in Iceland and the Faroe Islands. In addition, the Company operates convenience stores and provides services and sells oils for house heating in the Faroe Islands and sells fertilizer and other chemical products in Iceland. The Company's customer base spans from individuals to institutions and companies in the fishing industry, agriculture, transport and contractors. Skeljungur owns the brand names Skeljungur, Orkan and OrkanX in Iceland and Magn in the Faroe Islands. Skeljungur's goal is to fulfil the energy needs of individuals and companies in an efficient and safe way, in harmony with the environment.
Find us on Linkedin
Attachments