DGAP-News

Ernst Russ AG Continues its Positive Revenue and Earnings Growth

DGAP-News: Ernst Russ AG / Key word(s): Quarter Results Ernst Russ AG Continues its Positive Revenue and Earnings Growth 17.05.2022 / 09:10 The issuer is solely responsible for the content of this announcement. Hamburg, 17 May 2022 - The Ernst Russ Group operating result showed positive trends in Q1 2022 in spite of the global political issues and the resulting economic consequences. Due to favourable trends in the shipping markets and investments made in expanding its fleet, the Group can look back on the fifth consecutive quarter of revenue and earnings growth.

The Ernst Russ Group had a majority holding in 28 vessels as of 31 March 2022. This portfolio consists mainly of container vessels in the 700 to 6,600 TEU classes, plus a handysize bulker with a capacity of 38,000 DWT and a multi-purpose vessel. Advantage was taken of the positive market environment to sell the vessels, Dance and Lotta Auerbach in Q1 2022 and Music in Q2 2022 and good gains on disposal were achieved. The acquisitions of the vessels Conmar Avenue and Faith (formerly Motivation D) in Q2 2022 were made in continuation of our business strategy and will contribute positively to revenues and earnings in the future.

The Q1 2022 financial statement illustrates the positive overall performance of Ernst Russ Group.
The statement shows that revenue was up EUR 18.5 million or 109% year-on-year to currently EUR 35.4 million. In addition to the increase in charter rates and good capacity utilisation, the expansion of the fleet by two vessels in Q1 2021 and, in particular, by a further twelve vessels at the end of Q4 2021, had a positive impact. Operating earnings of EUR 16.5 million (previous year: EUR 1.3 million) generated pre-tax earnings of EUR 15.1 million (previous year: EUR 0.2 million). Consolidated net income after non-controlling interests amounted to EUR 9.1 million (previous year: EUR 0.3 million). Ship assets were down EUR 15.3 million to EUR 194.9 million due to the sales of vessels in Q1. The other ship transactions described above will not have an impact on the assets, financial position and earnings of the ER Group until Q2 2022. Equity of EUR 154.7 million (31 December 2021: EUR 142.8 million) produced an equity ratio of 60.5% (31 December 2021: 54.2%).