German boxship owner Ernst Russ has seen profits dip as it logged lower charter revenues.
The Hamburg-based container ship tonnage provider logged a drop of about 6.6% in profit in the year to date.
Consolidated net income after minority interests was €33.9m ($36m) in the first nine months of the year, down from €36.3m in the previous corresponding period.
Revenue decreased by 14% or €20.2m year on year to €129.1m in the period.
This was mainly due to the anticipated decline in the average daily charter rate from $20,053 per day to $17,432 per day.
Ernst Russ is the majority owner of 29 ships, mainly container ships of between 700 teu and 4,200 teu.
It also owns a 6,600-teu and 13,400-teu container ship, a 38,000-dwt handysize bulker and a multipurpose ship.
Some 15 of its vessels are on 12-month charters.
Satisfactory
Ernst Russ, which is 38.5% controlled by the Dohle Group, said its assets, financial position and earnings had continued to develop at a “satisfactory” level.
“Against this backdrop and considering the largely secured employment situation of the fleet, the ER Group continues to expect revenue within a range of €155m to €175m,” it said.
Ernst Russ logged Ebit of €51.3m in the first nine months. It expects Ebit in the range of between €47m and €67m for the 2024 financial year as a whole.
“Despite the stabilisation of inflation and general economic growth, the shipping industry continues to face risks stemming from the ongoing escalation of regional conflicts, particularly in the Middle East and the Russia-Ukraine war, as well as renewed trade tensions,” the company said.
The company recorded earnings before taxes of €51.8m, down from €57.8m,
Ship assets decreased by €21.8m to €230m.
The fleet remains highly utilised and was operational for 7,784 days, or 96.6%, in the first nine months of this year.
