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Hapag-Lloyd revenues fell in the first three quarters of the year, with EBITDA sinking 20.5% to $3.6 billion year-on-year
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EBIT dropped 35.1% and group profit collapsed 46.5%
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Rolf Habben Jansen, Hapag-Lloyd CEO, said the first nine months of the year were, however, marked by “unexpectedly strong demand”
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Hapag Lloyd’s executive board raised its forecast for the current year: EBITDA is seen to be in the vicinity of $4.6 billion to $5 billion
Hapag-Lloyd revenues slipped in the first three quarters of the year, with earnings before interest, taxes, depreciation, and amortization (EBITDA) sinking 20.5% to $3.6 billion year-on-year.
EBIT stood at $1.9 billion and group profit of $1.8 billion, also dropping 35.1% and 46.5%, respectively.
The results are as expected, in view of lower freight rates in the first half of the year 2024 and increased transport expenses due to the rerouting of ships around the Cape of Good Hope.
Rolf Habben Jansen, Hapag-Lloyd CEO, in a statement said the first nine months of the year were, however, marked by “unexpectedly strong demand,” noting “We were able to further increase our transport volume compared to the previous year and can look back on a good result overall.”
Stronger demand and higher freight rates in the third quarter of 2024 also led to a significant rise in earnings.
The CEO said the company has commissioned an extensive newbuild program for 24 ships, which will help modernize and decarbonize their fleet, thereby assuring their long-term competitiveness.
READ: Hapag-Lloyd orders 24 container ships worth $4B
In the carrier’s Liner Shipping segment, transport volumes rose in the first nine months of the year by 5% compared to the same period last year.
Segment revenues dipped by 2% to $15.0 billion due to lower average freight rate of $1,467/TEU compared to last year’s $1,604/TEU.
The company’s Terminals and Infrastructure segment saw a significant rise in sales and earnings for the period. EBITDA rose to $114 million with EBIT of $56 million. It should be noted that the segment was only founded in the second semester of last year.
Because of the better-than-expected earnings, Hapag Lloyd’s executive board raised its forecast for the current year. The company now expects EBITDA to be in the vicinity of $4.6 billion to $5 billion.
EBIT, meanwhile, is seen to be in the $2.4 billion to $2.8 billion range.
Jansen also said they have made “good progress” in building up their terminal business under the Hanseatic Global Terminals brand.
“Looking ahead, we will continue to vigorously implement our Strategy 2030 while focusing on our growth and quality targets,” he said.
