Germany’s Ernst Russ Group expects its top and bottom lines to be lower this year as the container charter market normalises.
The Hamburg container ship tonnage provider is projecting consolidated revenue in the €155 to €175m ($169m to $190m) range this year, down on €202.7m last year and €191.7m in 2022.
Operating earnings are expected to range from €47m to €67m.
That too is way down on earnings of €86.6m in 2023 and €90.1m in the previous year.
The Hamburg and Frankfurt-listed company attributed the expected drop in earnings to the container ship charter market returning to a normal level following a profitable 2023 in the face of geopolitical challenges.
Consolidated net income after tax and before non-controlling interest was €81.6m in 2023, slightly down from €83.9m a year earlier.
The result after non-controlling interest was €55m in 2023 compared with €47.3m.
Revenues of €202.7m were up €11m year on year, largely due to higher charter rates of $20,091 per day, up from $19,057.
The company is the majority owner of 30 ships, most of which are container ships of 700 teu to 13,400 teu.
Around 81% of revenues are secured through existing charter parties and 12% is accounted for through revenue from charter pools.
Chief executive Robert Gartner said the company has been able expand and rejuvenate its fleet.
Last July, it bought the 13,400-teu Rome Express (built 2010) from Denmark’s Navigare Capital Partners.
It also acquired the 2,194-teu Frida Russ (built 2017), and the 1,025-teu Bakkafoss (built 2009) was purchased this year in partnership with Eimskip of Iceland.
Two 20-year-old feeder vessels were sold.
The ER Group’s liquidity was €9.5m higher year on year on account of positive operating cash flow, and its equity ratio increased from 73.2% to 76.4%.
The board has proposed paying a dividend of €1 per share at the AGM on 30 May.
