Hapag-Lloyd Reports Second Quarter Profits

MarineLink.com
Wednesday, August 07, 2013

Group profit of €20.9 million in Q2 / Operating result more than doubled compared to last year / Transport volume increases by 2.3%

Hapag-Lloyd returned to profitability in the second quarter of the current financial year, reporting a Group profit of €20.9 million for the months April to June 2013 (Q2 2012: -€7.3 million). The operating result of €66.7 million was more than twice as high as last year’s figure of €30.8 million. EBITDA also improved significantly by 45% to €147.8 million. Although intense competition led to unsatisfactory rate levels, substantial cost cuts and a slight drop in the bunker consumption price were the main factors behind the positive net result. Bunker costs in the second quarter averaged $622/tonne, which was below last year’s figure ($694/tonne). However, the bunker price is currently still more than three times the level seen at the start of 2009, when it was approximately $200/tonne.

The intense competition in the second quarter meant that, unlike last year, it was almost impossible to implement announced rate increases on the market. As a result, the average freight rate of $1,499/TEU was down on last year’s figure ($1,594/TEU). The transport volume, on the other hand, rose by 2.3% to 1.39 million TEU (previous year: 1.36 million TEU). Revenue came to €1.706 billion, compared with €1.794 billion in the same quarter last year.

“Rate increases are indispensable in order for liner shipping companies to return to a sound earnings situation. While we managed to implement small rate increases at the start of July, it is still not enough. Further rate increases have been announced”, said Michael Behrendt, Chairman of the Executive Board of Hapag-Lloyd.

Revenue in the first half of 2013 was largely stable at €3.358 billion (previous year: €3.395 billion). The average freight rate was disappointing with $1,522/TEU for the first six months, which was $17 below last year’s already unsatisfactory level. The transport volume rose by 1.2% to more than 2.7 million TEU in the first half of the year.

Hapag-Lloyd’s EBITDA came to €171.8 million overall in the first six months, considerably outstripping last year’s figure (€80.9 million). The positive operating result of €13.5 million was also substantially higher than last year (€-68.7 million). Due to the usual seasonal weakness of liner shipping in the first quarter, the Group net result for the first six months overall came to -€72.7 million (previous year: -€139.7 million).

Investments of €463.6 million were made in the first half, with most of the funds going towards ships and containers. Long-term financing has already been secured for the vessels on order and all the investments in containers which have been made and are planned. Equity of €3.1 billion and an equity ratio of approximately 44% (as at 30 June) clearly illustrate that Hapag-Lloyd’s financial structure remains sound.

Hapag-Lloyd said it is striving for a positive operating result for the full year 2013.

hapag-lloyd.com


People & Company News

Rickmers Holding, E.R. Capital Drop Merger Plan

Rickmers Holding AG and E.R. Capital Holding have jointly decided not to pursue the merger of their ship management activities.   For many years the companies

MN100: Conrad Shipyard

The Company: Conrad Shipyard was established in 1948 and is headquartered in Morgan City, Louisiana. The company designs, builds and overhauls tugboats, ferries,

Why Maritime Museums Matter

With today’s focus on digital technology, mobile apps, enhanced reality and the overall digital landscape, the maritime industry often gets overshadowed, leaving some to ask,

Finance

Rickmers Holding, E.R. Capital Drop Merger Plan

Rickmers Holding AG and E.R. Capital Holding have jointly decided not to pursue the merger of their ship management activities.   For many years the companies

Yangzijiang Shipbuilding to Slash 2,000 More Jobs

Chinese shipbuilder Yangzijiang Shipbuilding Holdings Ltd said it plans to cut 2,000 additional jobs, just under 10 percent of its current workforce, stepping up

Australia Warns DCNS after Security Breach

Australian defence officials warned French naval contractor DCNS to beef up security in Australia, where it is preparing to build a A$50 billion ($38.13 billion) fleet of submarines,

Container Ships

Rickmers Holding, E.R. Capital Drop Merger Plan

Rickmers Holding AG and E.R. Capital Holding have jointly decided not to pursue the merger of their ship management activities.   For many years the companies

Hapag-Lloyd: UASC Merger Benefits to show in 2017

German container shipping line Hapag-Lloyd expects to reap a third of targeted annual synergies of $400 million from the planned merger with Arab rival UASC already next year,

Asia’s Biggest Container Shipper Posts Loss

Asia’s largest container shipping company China Cosco Holdings Co  posted a net loss of Yuan7.2bn ($1.1bn) for the first six months of 2016, reversing the Yuan2bn

News

White House: Iranian Ships' Actions in Gulf Increase Risk of Miscalculation

Actions by Iranian vessels in several encounters with U.S. warships in the Gulf this week are cause for concern and increase risks of miscalculation, the White House said on Friday.

Rickmers Holding, E.R. Capital Drop Merger Plan

Rickmers Holding AG and E.R. Capital Holding have jointly decided not to pursue the merger of their ship management activities.   For many years the companies

C-Job Designs Flettner Freighter for Switijnk

The Dutch shipping company family Switijnk has contracted C-Job Naval Architects to develop a Rotor Sail-equipped design to meet their specific loading and sailing profile.

Logistics

Rickmers Holding, E.R. Capital Drop Merger Plan

Rickmers Holding AG and E.R. Capital Holding have jointly decided not to pursue the merger of their ship management activities.   For many years the companies

Vitol's Malaysia Terminal Suspends Ops after Spill

VTTI, the storage unit of world's largest oil trader Vitol, has suspended operations at its terminal in southern Malaysia following an oil spill, two industry sources said on Friday.

MN100: TPG Marine Enterprises, LLC

The Company: TPG Marine Enterprises, LLC is an operations, logistics and consulting company that specializes in all aspects of cargo movement on the Inland Waterways System.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1583 sec (6 req/sec)