Ernst Russ AG to acquire further shares in a Fleet Holding Company
Executive and Supervisory Board of Ernst Russ AG have resolved to acquire further shares in a Fleet Holding Company in the amount of 10 %. As a result, Ernst Russ AG indirectly acquires the majority interest totalling 55 % in a twelve container feeder vessels portfolio. This consists of eleven container vessels in the 800 TEU class and one container vessel with 1,800 TEU, according to the company's release.
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 has an ice class, which enables them to be used in Baltic Sea traffic. Realization of the transaction is planned for the year end 2021.
The investment, which was previously accounted by applying the equity method, will thus be fully included in the consolidated financial statements of Ernst Russ AG as of the acquisition date. This is currently scheduled for 31 December 2021.
For the upcoming financial year 2022, the vessel portfolio is expected to contribute to Ernst Russ AG´s Group earnings with revenues in a range of EUR 41 to 44 million, an EBITDA of EUR 20 to 23 million, and an EBIT of EUR 3 to 5 million. The portfolio´s EBIT will be mainly affected by an initially higher depreciation.
In addition, the Executive Board today published Ernst Russ AG's forecast for the financial year 2022. The Executive Board expects consolidated revenues in a range of EUR 140 to 145 million, a consolidated EBITDA of EUR 67 to 72 million and an adjusted EBIT (consolidated earnings before interest and taxes, adjusted of non-operating expenses and income) of EUR 41 to 46 million.
Furthermore, the Supervisory Board decided to extend the contract of Mr. Robert Gärtner, the sole member of the Executive Board of Ernst Russ AG.