Hapag-Lloyd Delivers Improved Results for First Nine Months of 2020
Earnings increase 20% year on year to $2 billion
Hapag-Lloyd has concluded the first nine months of 2020 with earnings before interest, taxes, depreciation and amortisation (EBITDA) of more than $2 billion, which represents a 20.4% increase over the prior-year figure.
At the same time, earnings before interest and taxes (EBIT) rose to $965 million, surpassing the corresponding prior-year figure of $722 million.
The Group net result improved to $605 million, an increase of $272 million over the previous year.
At around $10.5 billion after the first nine months of the year, revenues were about 1 percent below the prior-year figure.
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 the nine months of the prior year at 8,696 TTEU.
The average freight rate was up 2% to $1,097/TEU (9M 2019: $1,075/TEU), which had a positive impact on earnings.
In addition, transport expenses decreased more than proportionately by 6%, due to a combination of lower transport volumes, a lower average bunker price of $402 per metric tonne (9M 2019: $425 per tonne), and rigorous cost management as part of the Performance Safeguarding Program.
Rolf Habben Jansen, CEO of Hapag-Lloyd said: “In this nine-month period, we have achieved a good result and strictly managed our costs while at the same time benefiting from improved market conditions in the third quarter.
"However, with its increasing number of cases worldwide, the COVID-19 pandemic continues to pose high risks to the logistics industry and the supply chains of our customers.
"We will stick to our present course, continue to implement our Strategy 2023, and keep a close eye on the well-being of our employees, the needs of our customers and our operating cost.”
Based on the earnings forecast that was adjusted upwards in October, Hapag-Lloyd expects an EBITDA of $2.8 to $3 billion and an EBIT of $1.3 to $1.5 billion for the full financial year 2020.