Germany’s Ernst Russ Group will focus on acquiring younger tonnage after trebling profits and paying down debt.
The container ship tonnage provider has used its strong financial position to largely repay the ship mortgage loans.
Liabilities to banks had fallen just €3.4m ($3.5m) in the first nine months of the year, down from €75.7m.
At the same time, the equity ratio increased from 54.2% to 76.7%
That has “fundamentally strengthened” the company for the upcoming financial years, it added.
The Frankfurt and Hamburg-listed company saw profits soar in the first nine months of 2022.
Consolidated net income after non-controlling interests amounted to €33.9m, up from €10.7m in the previous nine months.
Revenues more than doubled to €138m, compared with the €63.8m in the previous corresponding period.
Going forward, the focus will be on exploiting opportunities arising in the market and expanding the fleet with younger tonnage, the company said.
“By reducing debt and retaining profits, we consider ourselves well positioned for the financial years ahead to take advantage of opportunities that arise in the market and to expand the fleet with younger tonnage,” the company said.
This would help the company meet the challenges which include tighter emissions requirements for ocean-going vessels under the new carbon reduction legislation.
Ernst Russ is 38.2% controlled by the Dohle Group and a majority owner of 29 vessels. Most of the fleet is smaller container ships with a capacity of between 700 teu and 6,600 teu.
The company has retained its forecast for the full year issued in August. Revenue for 2022 is projected of between €183 and €193m.
Operating earnings are forecast to fall between €85m and €90m.
