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Rickmers Group has published Half-Year Report 2016

rickmers_logoThe Rickmers Group has published its Half-Year Report 2016 yesterday. In the first half of 2016 the Group generated consolidated revenues of € 249.3 million, 13.9 percent lower than in the corresponding period in 2015 (€ 289.6 million). The main underlying factors are the persistently strained market situation, expiring high-margin charter contracts, follow-on charters at the prevalent low market rates, lower freight earnings, and a sharper decline in capacity utilization in the project cargo business. The Group’s operating result before interest, taxes, depreciation and amortization (EBITDA) saw a clear fall of 36.1 per cent to € 87.7 million (H1 2015: € 137.4 million), following the decline in revenues compounded by comparatively steep falls in other operating income, due in particular to exchange-rate effects. Positive effects from financial derivative instruments were overshadowed by the weak operating result and extraordinary net impairments on vessels, as reflected by the net result. Following a positive net earnings result of € 2.6 million in the first half of 2015, the consolidated net result for H1 2016 shows a € 131.5 million loss.

Outlook confirmed for 2016 financial year

With the presentation of its half-year figures, the Executive Board of the Rickmers Group reaffirms its forecast provided in the 2015 Annual Report, and subsequently confirmed in its earnings guidance for the full 2016 financial year provided in the first quarter. In view of the lowered forecasts for global economic growth as well as the global container trade, the Rickmers Group currently sees no sign of a macroeconomic recovery in the second half of the year. This situation is reflected by the development of charter and freight rates, which the management sees as likely to remain at their current low levels. Based on the declining development in revenues, due amongst other factors to the deconsolidation on 1 January 2016 of a joint venture comprising three 9,450 TEU container vessels, lower spot charter rates, persistently low freight rates, and falling capacity utilization in the project-cargo business, the management continues to expect an operating result (EBITDA) of Rickmers Group for the 2016 financial year clearly below the relevant 2015 figure.

The complete Half-Year Report 2016 is available for download from www.rickmers.com.

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