ERNST RUSS AG
2023 HALF-YEAR REPORT
TABLE OF CONTENTS | Ernst Russ AG | Half-Year Report 2023 |
CONTENTS
Half-Year Report 2023 | Ernst Russ AG | KEY FIGURES |
KEY FIGURES
Introduction by the CEO | 6 | |
Share and investor relations | 12 | |
1. | INTERIM GROUP MANAGEMENT REPORT | 16 |
1.1. | Foundations of the Group | 17 |
I. | Business operations | 17 |
II. | Financial report | 18 |
EARNINGS
Revenue
Operating earnings*
Earnings before taxes (EBT)
Profit attributable to non-controlling interests
Consolidated net income for the period after non-controlling interests
Earnings per share**
UNIT
EUR million
EUR million
EUR million
EUR million
EUR million
EUR
1/1 - 30/6/2023 96.4 27.6 29.2 11.5 17.6 0.53
1/1 - 30/6/2022
82.7
51.0
46.5
20.8
25.6
0.79
CHANGE IN %
16.6
-45.9
-37.2
-44.7
-31.3
-0.26 EUR
1.2. | Assets, financial position and earnings of the ER Group | 21 |
I. | Assets | 21 |
- Determined in accordance with economic criteria
- The company does not hold any treasury shares
II. | Financial position | 23 |
III. | Earnings | 24 |
1.3. | Opportunities and risks | 26 |
1.4. | Forecast | 28 |
BALANCE SHEET
Total equity and liabilities
Ship assets shown on the balance sheet***
Equity
Equity ratio
Cash at hand and bank balances
UNIT
EUR million
EUR million
EUR million
%
EUR million
30/6/2023
293.9
218.7
229.9
78.2
47.2
31/12/2022
283.3
195.9
207.5
73.2
57.8
CHANGE IN %
3.7
11.6
10.8
5.0 percentage points -18.3
2. | INTERIM CONSOLIDATED FINANCIAL STATEMENTS OF ERNST RUSS AG | 30 |
3. | CONDENSED NOTES TO THE INTERIM CONSOLIDATED STATEMENTS OF ERNST RUSS AG | 36 |
*** Includes down payments made and assets in the course of construction
EMPLOYEES
Average employee capacity (total)
Average employee capacity (shore-based)
Personnel expenses
(not including maritime personnel)
Personnel expense ratio
(not including maritime personnel)
KEY FIGURES SPECIFIC TO VESSELS
Number of fully consolidated vessels
Capacity
Capacity
Average charter rate
Days employed
Technical availability
Employment ratio
UNIT
Full-time equivalent
Full-time equivalent
EUR million
%
UNIT
TEU
DWT
UNIT
USD/day
Days
%
%
1/1 - 30/6/2023
79 (of which 44 maritime personnel)
35
2.3
2.4
30/6/2023
31
51,650
722,083
1/1 - 30/6/2023 19,920 5,034 94.0 94.0
1/1 - 30/6/2022
84(of which 46 maritime personnel)
38
2.4
2.9
31/12/2022
29
49,737
685,575
1/1 - 30/6/2022
17,380
4,929
96.0
95.3
CHANGE IN %
n/a
-7.9
-4.2
-0.5 percentage points
CHANGE
2 vessels
1,913 TEU
36,508 DWT
CHANGE
2,540 USD
105 days
-2.0 percentage points
-1.3 percentage points
3
AT A GLANCE | Ernst Russ AG | Half-Year Report 2023 | Half-Year Report 2023 | Ernst Russ AG | AT A GLANCE |
AT A
GLANCE
As an international ship-owner and maritime investment manager, we regularly expand our fleet and secure stable and sustainable earnings and added value for investors and shareholders.
31 | 1893 | 8,200 | |||||||||
vessels (fully consolidated) | Establishment of | shareholders as at 30/6/2023 | |||||||||
30/6/2023 | traditional ship-owner Ernst Russ | ||||||||||
2005 | 33,500,286 | ||||||||||
19, | USD/ | ||||||||||
DAY | Listed since 2005 | Number of shares as at 30/6/2023 | |||||||||
920 | |||||||||||
Average charter | rate | (Frankfurt Stock Exchange, | |||||||||
for the ER fleet in the first half of 2023 | Hanseatic Stock Exchange Hamburg) | ||||||||||
2017 | ||||||||||||||
51,650 TEU | ||||||||||||||
Listing in Scale segment of the | ||||||||||||||
Container capacity of the ER fleet | Frankfurt Stock Exchange | |||||||||||||
30/6/2023 | ||||||||||||||
722,083 DWT | 78.2 % | |||||||||||||
Capacity of the ER fleet | Equity ratio as at | |||||||||||||
30/6/2023 | 30/6/2023 | |||||||||||||
.4 | ||||||||||||||
94.0 % | 96 | |||||||||||||
35 | EUR | |||||||||||||
MILLION | ||||||||||||||
Technical availability of the | Revenue | |||||||||||||
ER fleet in the first half of 2023 | Number of employees ashore | First half of 2023 | ||||||||||||
30/6/2023 | ||||||||||||||
218.7 | ||||||||||||||
16.8 MONTHS | 42 | |||||||||||||
EUR | ||||||||||||||
MILLION | ||||||||||||||
Average remaining term | Number of employees at sea | Own ship assets | ||||||||||||
of charterparties as at 30/6/2023 | 30/6/2023 | (carrying amount) 30/6/2023 | ||||||||||||
4 | 5 |
INTRODUCTION BY THE EXECUTIVE BOARD | Ernst Russ AG | Half-Year Report 2023 | Half-Year Report 2023 | Ernst Russ AG | INTRODUCTION BY THE EXECUTIVE BOARD |
INTRODUCTION BY THE
EXECUTIVE BOARD
Dear shareholders and valued business partners of Ernst Russ A G,
ROBERT GÄRTNER
CEO
The German economy has experienced several years of crisis from which it is struggling to recover. It took around three years for the Federal Government to officially declare the coronavirus pandemic over in early April 2023. By that time, war had already broken out in Ukraine. Rus- sia's invasion of Ukraine on 24 February 2022 once again caused human tragedies as well as a political and ecological catastrophe for Europe and a severe economic crisis. The Institute for Economic Research has calculated that the coronavirus pandemic and the Ukraine war will have reduced economic output in Germany by around EUR 600 billion by the end of this year. We hope that the German economy will once again prove to be robust and able to cope with these setbacks.
Following the correction in the second half of 2022, the container ship charter market is significantly below the exceptionally high levels seen last year. How- ever, it stabilised again slightly towards the end of the first half of 2023. In this mixed market environment, several opportunities arose in the first half of 2023 for the ER Group to expand its existing fleet. In Q1 2023,
purchase agreements were reached for two container ships with a slot capacity of 1,025 TEU and 2,194 TEU respectively. Both vessels were handed over at the beginning of May 2023. A 13,371 TEU container ship was also acquired at the end of June 2023. The vessel was handed over in mid-July 2023. This acquisition sees the ER Group adding to its ship portfolio once again in terms of the number and size class of vessels in its fleet. In a bid to rejuvenate the fleet, a 20-year-old container ship with a capacity of 2,450 TEU was sold in Q2 2023. The vessel was handed over in mid-July this year.
In recent years, the ER Group has systematically expanded its own fleet of vessels and steadily increased its revenue in line with charter rate growth. In the first half of 2023, revenue was up EUR 13.7 million year-on- year to EUR 96.4 million. The employment ratio was 94.0% (equivalent period in the previous year: 95.3%). The first half of the previous year was characterised by exceptionals, including the sale of three seagoing ves- sels. Consequently, operating earnings were down from EUR 51.0 million to EUR 27.6 million. Consolidated net
income after tax and before non-controlling interests amounted to EUR 29.1 million, of which EUR 11.5 million was attributable to minority interests. The Group's equity ratio increased from around 73.2% to around 78.2%. In light of the continued positive performance and the largely secure employment situation of the ER Group fleet for the 2023 financial year, we have been able to raise our previous forecast to the effect that we are now expecting revenue for whole of 2023 ranging between EUR 190 and EUR 210 million and operating earnings (EBIT) between EUR 70 and 90 million.
We offered our shareholders a share dividend for the 2022 financial year for the first time. Our shareholders had the option of choosing between a full or partial distribution of their dividend in cash or in the form of new shares. Overall, shareholders with around 71% of shares eligible for dividend opted to receive their dividend as shares. This high acceptance rate demonstrates confirmation by the shareholders of the strategic orientation of Ernst Russ AG and underlines their long-term confidence in the company's further development.
At this point in my introduction, I would like to remember our former Supervisory Board Chairman Udo Bandow who passed away on 17 July 2023. We have lost a highly valued mentor and will always remember him with tremendous gratitude.
I would like to thank all ER Group employees for their commitment in these challenging times. I would also like to thank the Supervisory Board for its consistently close and constructive cooperation.
Yours sincerely,
Robert Gärtner
CEO of Ernst Russ AG
Hamburg, August 2023
6 | 7 |
FLEET | Ernst Russ AG | Half-Year Report 2023 | Half-Year Report 2023 | Ernst Russ AG | FLEET |
POSITIONS OF THE ERNST RUSS FLEET
JULY2023
Louise Auerbach
Key
Ship in port
Polonia
Ship at sea
Container ship
Multi-purpose vessel
Bulker
Skogafoss | |||||
Bakkafoss | EF Ava | ||||
Ido | |||||
Solong | |||||
Hebe | Rubina | ||||
Visitor | Mirror | EF Emira | |||
EF Eldra | |||||
Trouper | Dream | ||||
Andante | |||||
Meandi | Moveon | ||||
EF Olivia | |||||
Faith | |||||
Winner | |||||
Isabella B | |||||
EF Eliza | |||||
EF Elena | Rita | ||||
Venetia | Rome Express | EF Emma | Emirates Wasl | ||
Lodur |
Frida Russ
Source: FleetMon
8 | 9 |
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Ernst Russ AG published this content on 24 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 August 2023 05:20:03 UTC.