German shipping company and maritime investment manager Ernst Russ has decided to increase its stake in a fleet holding company, thereby expanding its fleet with twelve containerships.
As informed, the company’s Executive and Supervisory Board has resolved to acquire further shares in Fernando Feeder Parent GmbH & Co. KG in the amount of 10%.
As a result, Ernst Russ indirectly acquires the majority interest totaling 55% in the 12-feeder-vessel portfolio. Specifically, the portfolio comprises eleven container vessels in the 800 TEU class and one 1,800 TEU ship.
“Due to their size, these vessels can be deployed very flexibly and are therefore in great demand with well-known charterers in the feeder service. The majority of the vessels have an ice class, which enables them to be used in Baltic Sea traffic,” the German shipping company said.
The transaction is planned to be implemented by the end of 2021.
For the upcoming financial year 2022, the vessel portfolio is expected to contribute to Ernst Russ’ earnings with revenues in a range of €41 to 44 million, an EBITDA of €20 to 23 million, and an EBIT of €3 to 5 million. The portfolio’s EBIT will be mainly affected by initially higher depreciation, the company added.
Forecast for 2022
On 6 December, the Executive Board published the company’s forecast for the financial year 2022.
Consolidated revenues are expected to be in a range of €140 to 145 million, a consolidated EBITDA of €67 to 72 million and an adjusted EBIT of €41 to 46 million.
In Q3 2021, the assets, financial position and earnings of the Ernst Russ Group showed positive trends as in the previous quarters. The company benefited from high capacity utilization and increased charter rates.
The group of companies generated total revenue of €63.8 million from January to September 2021, up 53% year-on-year. Ernst Russ generated operating earnings of €19.2 million and earnings before taxes of EUR 16.8 million. Consolidated net income after non-controlling interests amounted to €10.7 million, compared to €3.7 million posted in the corresponding period a year earlier.