Ernst Russ (ERAG) H1 2024 earnings summary

Executive summary

• H1 revenue fell 9.1% YoY to €87.6m as average charter rates declined; EBIT rose 32.2% to €36.5m, supported partly by a vessel sale and fewer scheduled dry-dockings.

• Net income after non-controlling interests increased to €24.0m from €17.6m; full-year revenue and EBIT guidance was maintained.

Financial highlights

• Revenue was €87.6m versus €96.4m; EBITDA rose 18.8% to €49.2m and operating earnings (EBIT) rose 32.2% to €36.5m.

• EBT increased 32.5% to €38.7m; consolidated net income before non-controlling interests was €37.8m, with €24.0m after non-controlling interests.

• Other operating income increased to €14.4m from €3.1m, including €6.5m of insurance payments, €2.2m charter compensation and €1.9m gain from a vessel sale.

• Operating cash flow was €50.0m versus €38.0m; investing cash flow was positive €7.5m versus negative €37.7m, and cash ended H1 at €108.3m.

Outlook and guidance

• FY2024 revenue guidance remained €155m–€175m and EBIT €47m–€67m, based on largely concluded charters and positive year-to-date trends.

• H2 assumptions included fleet technical availability of 95.3%, a stable economic environment and an average USD/EUR exchange rate of 1.08.

• Container charter rates were expected to stay elevated near term, while 2025 market conditions could be more difficult if Red Sea disruptions ease and fleet supply growth resumes.