Original-Research: Ernst Russ AG (von Quirin Privatbank Kapitalmarktgeschäft...

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Original-Research: Ernst Russ AG - from Quirin Privatbank
Kapitalmarktgeschäft

03.09.2025 / 16:52 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

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Classification of Quirin Privatbank Kapitalmarktgeschäft to Ernst Russ AG

     Company Name:               Ernst Russ AG
     ISIN:                       DE000A161077

     Reason for the research:    Update
     Recommendation:             Buy
     from:                       03.09.2025
     Last rating change:
     Analyst:                    Klaus Soer

Solid H1 Result - Strong Charter Rates

Despite ongoing geopolitical disruptions and a softer macro backdrop, Ernst
Russ delivered solid H1 2025 results. Rerouting around the Suez/Red Sea
corridor due to the middle east conflicts still extends voyage distances and
holds charter rates elevated. For H1 2025, revenue was EUR 79.8m (-8.9%
yoy), mainly caused by the reduced ship fleet (current fleet 26 ships).
Ernst Russ reported EBIT of EUR 55.6m (+19% yoy.). Given a non-operating
result of EUR -9.8m (including non cash FX valuation losses) we calculate an
QPB EBIT of EUR 45.8m (+22% yoy). Besides the operating contribution, EBIT
was largely influenced by disposal gains of EUR 32.3m (MS Wasl EUR 27.1m; MS
Andante 5.2m). Hence, adjusted EBIT (ex-disposals) was EUR 13.5m. The
current average remaining charter duration stands at 18.6 months and the
current average charter rate as of stands at USD 18,749 per day. Technical
availability of the fleet remains high at 99.9%. The balance sheet further
strengthened with an equity ratio of 80% (FY24: 75%). ER's net cash position
stands largely unchanged at EUR 111.7m (FY24: EUR 107m). Investments of
around EUR 15m included the buyout of minorities within the current fleet
according to the new strategic approach to increase transparency and focus
on capital market attractiveness. We have adjusted our full FY25e EBIT
estimates slightly down to EUR 75m. This anticipates the currency changes of
H1/25 as well as upcoming non-recurring income of positive disposal proceeds
of around EUR 8.5m (Solong). Our medium-term estimates remain unchanged and
are based on the current ship fleet. Based on our DCF valuation and peer
group analysis we reiterate our BUY recommendation with a TP of EUR 10.00.


You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=d207c50da0b7b544ba83172bff0eb4e6
For additional information visit our website:
https://research.quirinprivatbank.de/

Contact for questions:
Quirin Privatbank AG
Institutionelles Research
Schillerstraße 20
60313 Frankfurt am Main
research@quirinprivatbank.de
https://research.quirinprivatbank.de/

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2192734 03.09.2025 CET/CEST

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