German container carrier Hapag-Lloyd raised its earnings forecast after a better-than-expected third-quarter performance.
Hapag-Lloyd said earnings before interest and taxes (EBIT) for the third quarter 2020 significantly increased to around EUR350 million (US$410 million) from EUR253 million in the same period last year.
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose to around EUR650 million from EUR554 million a year ago.
Volumes were 3% below those of the previous year, “but much better than expected some months ago,” said the company in a release.
“We have experienced a strong third quarter with a high demand, especially for exports out of Asia,” chief executive officer Rolf Habben Jansen said.
READ: Hapag-Lloyd has good first half in 2020 but COVID-19 uncertainties remain
As a result, Hapag-Lloyd updated its full year 2020 earnings guidance: EBIT is raised to EUR1.1 billion to EUR1.3 billion, up from the previous EUR0.5 billion to EUR1.0 billion, while EBITDA is increased to between EUR2.4 billion and EUR2.6 billion from the earlier EUR1.7 billion to EUR2.2 billion.
Earlier, A.P. Moller-Maersk also updated its full-year earnings guidance as the container shipping sector continues to benefit from stronger-than-forecast demand even as uncertainties remain over the progression of the pandemic.
READ: Maersk upgrades outlook amid demand recovery
Driving growth for Hapag-Lloyd were significantly higher demand and higher transport volumes and rigorous cost and revenue management predominately driven by the company’s performance safeguarding program set up in the first quarter of 2020.
Jansen said that with the positive market development, “we expect a financial year with results well above our previous forecast. Nevertheless the pandemic will remain to be a huge challenge and a major source of uncertainty for the entire logistics industry.”
Photo courtesy of Hapag-Lloyd
