11/13/2020 | News release | Distributed by Public on 11/13/2020 04:44
Hapag-Lloyd has concluded the first nine months of 2020 with earnings before interest, taxes, depreciation and amortisation (EBITDA) of more than USD 2 billion (EUR 1.8 billion), which represents a 20.4 percent increase over the prior-year figure. At the same time, earnings before interest and taxes (EBIT) rose to USD 965 million (EUR 858 million), surpassing the corresponding prior-year figure of USD 722 million (EUR 643 million). The Group net result improved to USD 605 million (EUR 538 million), an increase of USD 272 million (EUR 241 million) over the previous year.
At around USD 10.5 billion (EUR 9.4 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 percent lower than the prior-year figure, at 8,696 TTEU (9M 2019: 9,011 TTEU). The average freight rate was up 2 percent, to 1,097 USD/TEU (9M 2019: 1,075 USD/TEU), which had a positive impact on earnings. In addition, transport expenses decreased more than proportionately by 6 percent, due to a combination of lower transport volumes, a lower average bunker price of USD 402 per metric tonne (9M 2019: USD 425 per tonne), and rigorous cost management as part of the Performance Safeguarding Program (PSP).
'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,' said Rolf Habben Jansen, CEO of Hapag-Lloyd.
Based on the earnings forecast that was adjusted upwards in October, Hapag-Lloyd expects an EBITDA of EUR 2.4 to 2.6 billion and an EBIT of EUR 1.1 to 1.3 billion for the full financial year 2020.
The financial report for the first nine months of 2020 is available online at: