[181110.EN.SEA] Hapag-Lloyd's Profits Soar In First 9 Months of The Year

HAPAG-LLOYD's earnings before interest and taxes (EBIT) in the first nine months of the year soared 115 per cent to EUR643 million (US$722 million), up from EUR299 million in 2018.

The group's net result grew to EUR297 million over the reporting period and was far higher than the EUR13 million reported last year.

Revenues from January to September rose to EUR 9.5 billion, up from EUR8.5 billion in 2018.

Transport volume increased by 1.2 per cent to 9 million TEU, and the average freight rate climbed by 4.2 per cent to US$1,075 per TEU. Transport expenses grew by 3.5 per cent, in particular due to a slightly higher average bunker consumption price of $425 per tonne, versus $406 per tonne in 2018, and a stronger average US dollar exchange rate against the euro.

"We have achieved a very respectable result after nine months. Despite geopolitical tensions and trade restrictions, we benefitted from higher transport volumes and better freight rates and also kept a close eye on our costs," said chief executive officer Rolf Habben Jansen.

The container shipping giant, which operates a fleet of 231 container ships with total transport capacity of 1.7 million TEU, saw revenues climb 6.2 per cent in the third quarter to EUR3.24 billion.

Earnings before interest and taxes (EBIT) jumped 21.6 per cent in the period to EUR253 million and, despite average industry-wide spot freight rates having been lower for most of 2019 compared to a year earlier, Hapag-Lloyd managed to claw a 2.7 per cent increase in freight rates measured in USD/TEU from customers during the third quarter.

Net profit in the third quarter totalled EUR115 million compared to EUR 113 million in the same period last year.

For the full financial year 2019, the company expects an EBITDA in the range of EUR1.6 to EUR2.0 billion and an EBIT in the range of EUR0.5 to EUR0.9 billion.

Source : HKSG