Shipping major Hapag-Lloyd has delivered strong earnings for the first nine months of 2020, which it attributes to volume recovery in Q3, stable freight rates, and low bunker prices.
According to the company, transport volumes were only slightly lower than last year thanks to the upward trend in Q3 while its Performance Safeguarding Program (PSP) delivered the expected cost savings.
The line has reported earnings before interest, taxes, depreciation and amortisation (Ebitda) of more than US$ 2 billion (EUR 1.8 billion), which represents a 20.4% increase over the 2019. At the same time, earnings before interest and taxes (Ebit) rose to US$ 965 million (EUR 858 million), surpassing the 2019 figure of US$ 722 million (EUR 643 million).
The Group net result improved to US$ 605 million (EUR 538 million), an increase of US$ 272 million (EUR 241 million) over the previous year.
At around US$ 10.5 billion (EUR 9.4 billion) after the first nine months of the year, revenues were about 1% lower.
“This can primarily be attributed to pandemic-related effects, including a double-digit drop in demand in the second quarter and an overall transport volume that was 3.5% lower than 2019, at 8 696 TTEU (9M 2019: 9 011 TTEU). The average freight rate was up 2%, to 1 097 US$/TEU (9M 2019: 1 075 US$/TEU), which had a positive impact on earnings,” according to a statement released today.
“In addition, transport expenses decreased more than proportionately by 6%, due to a combination of lower transport volumes, a lower average bunker price of US$ 402 per metric tonne (9M 2019: USD 425 per tonne), and rigorous cost management as part of the Performance Safeguarding Program (PSP).”
