Hapag-Lloyd returns to black in first half

Higher volumes and revenues reverse last year’s results as German line reports first half profit.

News ID: 80418

Date: 07 August 2019 - 13:25

Higher fuel costs and geopolitical risks still linger as Hamburg-based line reports strong second quarter and first half results.

REVENUES AND EARNINGS ROSE AT HAPAG-LLOYD IN THE SECOND QUARTER AND FIRST HALF.

HAPAG-Lloyd has turned around a €101m ($122m) loss in the first half of last year to a €146m profit this year on the back of improved rates and volumes.

The Hamburg-based container line reported volumes rose 2% during the first half of the year to 5.9m teu as average rates increased from $1,020 per teu to $1,071.

“Thanks to higher transport volumes in our core trades, good cost control and slightly better freight rates, we can look back on a good first half-year,” said chief executive Rolf Habben Jansen.

But despite the 5% increase in freight rates, the line warned that fuel costs had also risen from $385 per tonne to $429 per tonne since the first half of last year.

Hapag-Lloyd’s Strategy 2023 programme, which it introduced last year, helped nearly double earnings before interest, tax, depreciation and amortisation from €7.9m to €15.3m.

“After a solid first half of 2019, our outlook remains unchanged, even if we have to deal with more trade restrictions and see increasing geopolitical risk, which of course could impact growth,” Mr Habben Jansen said. “In the second half of the year, we will continue implementing our Strategy 2023 in our efforts to become the number one for quality.”