German tonnage provider Ernst Russ has again upgraded its profit forecast to around twice the level it forecast at the end of 2021.
The container ship, ro-ro and tanker owner expects an operating result of between €85m and €90m ($86.5m and $91.6m) for the financial year.
That is around €13m up on earlier estimates thanks a ‘positive business performance’, the company said.
The company had earlier this year projected an operating result of between €72 and €77m. In December, it put the figure at between €41 to €46m.
Revenues are projected to be higher at between €183 and €193m. That compares with between €160m and €170m in March.
Secure employment
Ernst Russ issued the upgrade “against the backdrop of the ongoing positive business performance and the largely secured employment situation of the fleet of Ernst Russ group for the fiscal year 2022”.
The company has based the forecast on charter contracts already concluded for the vast majority of the Ernst Russ fleet.
Preliminary and unaudited figures show the company doubled revenues and saw a fivefold increase in operating earnings in the first half of the year.
Revenues in the first half of the year rose to €82.7m in the six months to June, up from €39.6m in the same period last year.
Operating earnings (EBIT) rose to €51m in the interim period, up from €8.6m for the same period in 2021.
The company will publish final figures on 25 August.
Ernst Russ has this year building its container ship fleet following a number of disposals in hot markets.
The company took advantage of the positive environment in the second quarter to sell the 803-teu Music (built 2007).
Ernst Russ sold two other feeder vessels in the first quarter and said “good gains” were made on these disposals.
Meanwhile, it has been busy bringing new ships in.
Ernst Russ said it has bought the 1,036-teu feeder unit Conmar Avenue (built 2012), owned by Conmar Shipping of Germany.
And the 917-teu, $16m-rated Motivation D (built 2006) has been acquired and renamed Faith.
