Brief: Eimskip Sells Three Reefer Vessels In Norway

Eimskipafelag Islands hf

29/11/2019 06:46

Nov 29 (Reuters) - Eimskipafelag Islands hf  EIMS.IC :
    * EIMSKIP SELLS THREE REEFER VESSELS IN NORWAY
    * EIMSKIP HAS MADE AN AGREEMENT TO SELL THREE OF CO'S REEFER
VESSELS IN NORWAY FOR USD 12 MILLION (EUR 10.9 MILLION)
    * EIMSKIP RECENTLY PUBLISHED A THREE-YEAR TARGET CAPEX PLAN
AND
PRESENTED THAT MAINTENANCE CAPEX WOULD AMOUNT TO EUR 21 MILLION
IN 2020
    * AS A RESULT OF THE SALE OF THE VESSELS THE PLAN HAS BEEN
ADJUSTED DOWNWARDS BY EUR 4 MILLION AND REVISED TARGET IS
THEREFORE EUR 17 MILLION WHICH WILL RESULT IN IMPROVED CASH-FLOW
    * ESTIMATED IMPACT ON NEXT YEAR'S EBITDA IS A DECREASE OF
EUR 1-2
MILLION, BUT ON THE OTHER HAND IT IS ESTIMATED THAT NET EARNINGS
WILL INCREASE BY UP TO EUR 0,5 MILLION
    * VESSELS ARE TO BE DELIVERED TO THE BUYER AT THE BEGINNING
OF
NEXT YEAR. EIMSKIP WILL PROVIDE A SELLER'S LOAN EQUALING 50% OF
THE VESSELS PURCHASE PRICE WITH TERM OF SIX YEARS AND QUARTERLY
INSTALLMENTS AND INTEREST PAYMENTS
    * AS THE BOOK VALUE OF THE VESSELS EXCEEDS THE PURCHASE
PRICE,
EIMSKIP WILL REALIZE EUR 2 MILLION IMPAIRMENT LOSS THROUGH
AMORTIZATION IN THE FOURTH QUARTER OF 2019

Source text for Eikon:  ID:nGNE26tJvC 
Further company coverage:  EIMS.IC 

 (Gdansk Newsroom)
 ((gdansk.newsroom@thomsonreuters.com; +48 587785110;))