Positive business performance in 2023

Hamburg, 18 March 2024 - The Ernst Russ Group recorded a positive performance in its assets, financial position and earnings in 2023, although the financial year was marked by serious geopolitical conflicts and national and international economic weakness.

In addition to the Russia-Ukraine war, the year 2023 brought further trouble spots with international reach. The escalation of the Gaza conflict and the ongoing attacks on merchant ships in the Red Sea were accompanied by a massive loss of purchasing power as a result of the energy price crisis, low domestic consumption in China and weak national and international economic performance. As a result, the container shipping markets in particular came under pressure in 2023 and charter rates normalized significantly after peaking in 2021 and 2022.

Despite these adverse conditions, the Ernst Russ Group successfully expanded and rejuvenated its fleet in the 2023 financial year and continued the positive development of its assets, financial position and earnings. Revenue was up EUR 11.0 million to EUR 202.7 million in the reporting period and operating earnings were clearly positive at EUR 86.6 million. Consolidated net income after tax and before non-controlling interests was EUR 81.6 million. As at 31 December 2023, the ER Group's liquidity was EUR 9.5 million higher year-on-year on account of positive operating cash flow. The Group's equity ratio increased from around 73.2% to around 76.4%. The Executive Board and Supervisory Board of Ernst Russ AG have therefore decided to propose the payment of a dividend of EUR 1.00 per share at the Annual General Meeting, which will take place on 30 May 2024 in Hamburg. The dividend can be paid in cash or in the form of shares of the company, at the shareholders' option.

Following the sharp correction in the second half of 2022, the charter market has now returned to a normal level. Against this backdrop, the ER Group expects the consolidated revenue to range from EUR 155 million to EUR 175 million in the 2024 financial year. According to the current forecast, the operating earnings are expected to range from EUR 47 million and EUR 67 million.

"I am highly pleased with the company's performance," stated Robert Gärtner, CEO of Ernst Russ AG. "Ernst Russ AG successfully acquired three container vessels with a slot capacity of 1,025 TEU, 2,194 TEU and 13,400 TEU respectively, each with an average age of around ten years. Additionally, we divested two container vessels, each 20 years old, thereby expanding and rejuvenating our fleet and significantly strengthening our company's position."

You can request a printed copy of the current Ernst Russ AG Annual Report 2023 in both German and English or download it at www.ernst-russ.de.

About the Ernst Russ Group: Ernst Russ AG is a publicly traded international ship owner and maritime investment manager based in Hamburg. Parts of the company’s history date back to 1893. Currently, the corporate group manages a fleet of 30 vessels, partially operated in collaboration with strategic partners. The focus is on container vessels ranging from 700 to 4,200 TEU, complemented by two larger container vessels with approximately 6,600 and 13,400 TEU, respectively, along with a Handysize bulker with 38,000 dwt and a multi-purpose vessel. Ernst Russ AG is continuously expanding its fleet, thus ensuring stable and sustainable value growth for shareholders.

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