German asset manager MPC Capital is facing big delays on future investments despite a rise in shipping earnings.
The Hamburg group, which has interests in tankers, bulkers and boxships, said it had suspended its 2020 profit forecast against the background of the coronavirus pandemic.
The company added: "Given the increased market uncertainties, investment decisions are expected to be significantly delayed."
First quarter revenue jumped from €1.4m in 2019 to €11.4m ($12.2m) this year.
Of this, €10.3m came from management services, up from €8.9m the year before, which was mainly attributable to the expansion of the shipping business.
MPC Capital has expanded its activities in this area with the Harper Petersen joint venture and the investment in Albis Shipping & Transport in the fourth quarter.
Earnings before tax edged down to €600,000 from €700,000.
"The increased profitability of the services business was offset by lower income from co-investments of MPC Capital," the company said.
Forecast proving impossible
MPC added that the impact of the virus on valuations in core asset markets cannot yet be clearly projected.
"It is therefore not possible to predict at this point in time if and when transactions on which the planning is based can be carried out," the company said.
"Effects on the company's co-investment portfolio cannot be excluded if the corona crisis continues for a longer period of time."
But MPC said it believes it is well equipped to deal with the crisis "in the best possible way".
The firm has extensively reduced debt in the quarter, leaving it with an equity ratio of 74.6% and liquidity of €13.8m, which is still lower than the €20.6m it had at the end of 2019, however.
In November, the company bought 50% of Albis, which is a commercial platform for tankers of various sizes, offering tailor-made solutions for chartering and operations.
MPC's newly established unit Ahrenkiel Tankers was already technically managing a fleet of vessels for "selected customers".
It is focusing on product tankers, especially in the handysize, MR, LR1 and LR2 segments.
In September, MPC Capital and Zeaborn created a 160-ship container vessel fleet through a merger of two group companies.
Zeaborn's shipbroking outfit Harper Petersen joined with MPC's Contchart to carry out chartering and commercial management, the first formal collaboration between the groups.
