Ernst Russ AG Achieves a Positive Half-year Result against the Backdrop of Changing General Conditions
Hamburg, 25 August 2022 – Ernst Russ AG benefited of its investments in the international shipping markets and a sustainable employment concept of its fleet in the first half of 2022.
The military conflicts between Russia and Ukraine and their knock-on effects, such as the energy crisis and high inflationary pressure, led to a general economic downturn in the first half of 2022. Despite this, the Ernst Russ Group was able to turn the current positive trends in the international shipping markets to its advantage. Throughout the first half of 2022, freight rates were above average and are expected to remain at this level this year. In this market environment, the vessels in the Ernst Russ Group generated an average charter rate of around 17,380 USD/day in the first half of 2022. This represents an increase of 34.4% compared with the first half of 2021.
The rise in charter rates is also reflected in the business figures for the first half of 2022. An increase in revenues from EUR 39.6 million to EUR 82.7 million led to EBT rising from EUR 7.1 million to EUR 46.5 million. Cash and cash equivalents more than doubled to EUR 53.2 million compared with 31 December 2021. At EUR 209.7 million, ship assets are at approximately the same level as at the beginning of the year. The equity ratio rose from 54.2% (31/12/2021) to 64.7%.
In light of the continued positive performance and the largely secured employment situation of the fleet, the Ernst Russ Group is expecting revenues between EUR 183 million and EUR 193 million and operating earnings (EBIT) between EUR 85 million and EUR 90 million for the 2022 financial year. Over the coming months, the Group will use its financial strength to repay the loans taken out to finance the fleet. By reducing debt and retaining profits, Ernst Russ considers itself well positioned for the coming periods to take advantage of opportunities that arise in the market and to expand the fleet with younger tonnage.
You can download the Ernst Russ AG 2022 Half-Year Report at www.ernst-russ.de/en/investor-relations-de/finanzberichte.html.