Freight rates, revenue, and results in the third quarter all went up for Hapag-Lloyd, but the German ocean carrier is not enthusiastic about the future, saying the market environment “remains challenging.”
Earnings before interest and taxes (EBIT) for the quarter more than doubled to EUR86.6 million (US$110 million) against the previous year’s EUR36.7 million, while revenue of EUR1.7 billion was 15 percent higher than in the same period last year. EBITDA for the third quarter was EUR164.1 million, which represented a year-on-year increase of 56 percent. Earnings after interest and taxes amounted to EUR45.6 million from the previous year’s EUR9.6 million.
The average freight rate rose year-on-year by 8 percent to $41,647 per 20-foot-equivalent unit (TEU). “The rate increases initiated by Hapag-Lloyd in the first quarter and implemented in the second quarter had a tangible effect here,” a November 13 company press release stated.
The third quarter profit more than made up for the operating losses in the first half of the year, the company added.
“Given the intense competition and gloomier economic prospects this is a good result. Unfortunately, given the absence of the peak season, we were not able to continue the upward trend in freight rates in the third quarter,” said Michael Behrendt, chairman of the company.
In the first nine months of the current financial year, revenue climbed to EUR5.16 billion, an increase of 14.6 percent. EBITDA after nine months was EUR245 million, with adjusted EBIT of EUR17.9 million. The net result came to a loss of EUR94.1 million, largely due to the sharp rise in energy costs.
Hapag-Lloyd said the debt crisis in the euro zone will have a more intense effect in the fourth quarter, with liquidity constraints and declining consumer demand translating into a noticeably lower demand for transport services in these markets, especially in southern European countries.
Photo: roger4336
