Icelandic: Refinancing debt still a ‘challenge’

Icelandic Group on Wednesday released its first-half results, including an operating profit (EBITDA) of EUR 25.9 million (USD 33.4 million), up 20 percent from the same six-month period last year.

The company’s turnover reached EUR 510 million (USD 657 million), and its pre-tax profit amounted to EUR 13 million (USD 16.7 million), more than double last year’s total.

“Which CEO wouldn’t be exultant with a 135 percent increase in profitability during the first six months, after delivering in 2009 the best operating year in the company’s history?” said Icelandic CEO Finnbogi Baldvinsson. “But this success is not the work of one man. This reversal of fortunes is an achievement of all Icelandic Group employees.”

Baldvinsson noted that although Icelandic has managed to refinance EUR 65 million in long-term debt with the cooperation of several European and U.S. banks, refinancing debt continues to be “one of the main challenges of any management team in the current economic climate.”

“This should be duly noted, since faith in the Icelandic economy was badly damaged in the economic collapse of 2008. Iceland’s image abroad is still struggling. Nonetheless, agreements like the ones we have managed to secure increase our optimism for the future,” said Baldvinsson.

“The fact that we have successfully improved the operation of the company, already beginning to return funds to Iceland through the ownership of Landsbanki, is of great national importance,” he added. “The EUR 13 million pre-tax profit accumulated in the first six months of 2010 confirms that the decision of Landsbanki and stakeholders in the seafood sector to work with the company in difficult times was correct.”

All Supply & Trade stories >
Subscribe

Want seafood news sent to your inbox?

You may unsubscribe from our mailing list at any time. Diversified Communications | 121 Free Street, Portland, ME 04101 | +1 207-842-5500
None