Malta-based Endo Group recorded a pre-tax loss of €1.5 million in 2023, as it acquired two new vessels during the year, both of which were not operating at the start of the reporting period.
This is in sharp contrast to the €3.5 million pre-tax profit that was registered in 2022.
The results were announced in the group’s Annual Report for the financial year ended 31st December 2023, released recently.
Endo Group is involved in the acquisition, financing, management, and chartering of commercial vessels, together with providing ship-to-ship and mooring master services. It is composed of Endo Ventures Ltd as the parent company, together with Endo Finance plc, Endo Tankers Ltd, Endo Properties Ltd, International Fender Providers Ltd, IFP Marine Holdings Ltd as direct subsidiaries, together with a number of other indirect subsidiaries.
During the year, Endo Group generated €9.9 million in total revenue, a 20.7 per cent decrease from the previous year (2022: 12.5 million).
The group stated that this drop in revenue was expected since two new vessels, Endo Ponente and Endo Gregale, were acquired in June and October respectively, and thus did not have a full year of operations. The two new vessels contributed to an additional turnover of €3.2 million, yet had they been in operation for a full year, it would have amounted to €9.3 million.
In December 2022, the group sold one of its vessels, Endo Breeze, for €13.4 million, with the proceeds being used to finance the acquisitions of Endo Ponente and Endo Gregale.
Direct costs also decreased, going down from €9.9 million to €8.5 million, while administrative expenses rose by 26.4 per cent to €1.8 million (2022: €1.4 million).
The difference in profitability between the two reporting periods was further accentuated by €2.9 million in other income that was generated in 2022, largely a result of gains from the disposal of property, plant and equipment. This was not replicated in 2023, with other income only amounting to €252,244.
During the year, the group also incurred additional expenses in repairs, maintenance and installation of a ballast water treatment system on one of its vessels, which Endo Group stated “took longer than expected” and hence contributed to additional costs and loss of revenue.
As at the end of 2023, total assets amounted to €63.5 million, expanding significantly from the €48.5 million from the previous year.
Endo Group stated that its activities are expected to remain consistent for the foreseeable future, and with the new vessels operating for a full year in 2024, “a considerable increase” in turnover is anticipated.
