German ocean liner Hapag-Lloyd closed the third quarter of 2017 with a significant positive group net profit and a much improved operating result (EBIT) as the integration with United Arab Shipping Company (UASC) is almost completed and on schedule to be finalized by the end of the year.
In a statement, Hapag-Lloyd said that net profit for the third quarter amounted to EUR54.3 million (US$64 million), up sizably from the prior year’s income of EUR8.2 million. EBIT rose to EUR180.6 million from EUR65.6 million last year, and EBITDA stood at EUR361.5 million from the year-ago level of EUR184.6 million.
In the first nine months of 2017, Hapag-Lloyd achieved an EBITDA of EUR721.9 million compared to EUR381.3 million in the same period in 2016, while EBIT reached EUR267.9 million from the prior-year figure of EUR25.9 million. The group saw a positive profit result after taxes of EUR8.2 million after sustaining a loss of EUR133.9 million in the same nine-month period last year.
Transport volume increased by 24.4% in the first nine months of 2017 to 7.03 million twenty foot equivalent units (TEUs) from 5.65 million last year. Transport expenses (excluding bunker costs) only rose by 17.8% primarily due to cost savings as well as additional fleet and network optimization.
Freight rates continued to recover in the third quarter, standing at $1,060 per TEU after nine months (prior-year period: $1,037 per TEU).
“The good operating result that we have achieved after three quarters is not only due to the positive development of the global economy and the increasing global container transportation volume,” said Rolf Habben Jansen, CEO of Hapag-Lloyd AG. “The quick and smooth integration of UASC into the Hapag-Lloyd Group has also played a crucial role. We have already been able to realize the first synergies resulting from the merger which will help us to further solidify our position in the sector.”
Hapag-Lloyd said it continues to expect a significant rise in transport volumes, a notable hike in bunker price, and an unchanged average freight rate. EBITDA and EBIT are also expected to rise significantly.
Photo: Tvabutzku1234
