Here's a rough translation of the news item referred to:

A man was rescued by a nearby boat after his boat had caught fire around noon today.

The Coast Guard control center monitored a call at 12:30 that black smoke was visible 7 nautical miles west of Gardskagi peninsula. The Coast Guard rescue helicopter was called out. The Iceland Defence Force happened to have a helicopter ready for takeoff and this flew directly to the spot at the request of the Coast Guard.

At 12:45 a report was received from the fishing boat Fusi SH162 that the smoke came from a boat and that one man was in the sea wearing a flotation suit. The boat was Eyrarrost KE25 from the port of Keflavik.

When the Defence Force helicopter arrived the man had been rescued from the water by the crew of Fusi who brought him to land for medical attention. The two helicopter then returned.