In line with general industry predictions of a positive financial outlook for shipping lines, Hapag-Lloyd has concluded the first half of the year with earnings before interest and taxes (EBIT) of US$ 563 million, surpassing the figure of US$ 440 million achieved last year.
The Group profit improved to US% 314 million and earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to US$ 1.29 billion.
“After the year got off to a decent start, transport volumes significantly declined in the second quarter as a result of the Covid-19 pandemic. We benefited from the sudden drop in bunker prices, adjusted capacity to lower demand, and took additional cost-cutting measures as part of our Performance Safeguarding Program,” said chief executive officer Rolf Habben Jansen. “On the whole, we have a good first half year behind us despite the coronavirus crisis.”
Revenues in the first half year of 2020 stood at approximately US$ 7.0 billion, less than 1% below last year. “This can primarily be attributed to the fact that transport volumes decreased by approximately 4%, to roughly 5.8 million TEUs. While they increased slightly in the first quarter, the second quarter saw a decline of roughly 11% as a result of the pandemic. The average freight rate in the first half improved slightly to US$ 1 104 per TEU.”
Looking ahead, the results forecast remains unchanged, according to Habben Jansen. For the current financial year, Hapag-Lloyd expects an EBITDA of EUR 1.7 to 2.2 billion and an EBIT of EUR 0.5 to 1.0 billion. “Given the Covid-19 pandemic and the economic repercussions it has had in many parts of the world, the forecast will remain subject to considerable uncertainty.”
