GERMAN shipping giant Hapag Lloyd posted a 2.7 per cent increase in 2016 year-on-year operating profit (EBITDA) to EUR607 million (US$642 million), drawn on revenues of EUR7.7 billion, down 12.5 per cent.
Fourth quarter EBITDA increased 61.2 per cent year on year to EUR226 million, said the company without providing quarterly revenue figures in its press release.
Due to 15 per cent lower freight rates, which averaged US$1,036 per TEU in 2016, revenue decreased while container volume increased by 2.7 per cent to 7.6 million TEU.
The company also said that transport costs declined 12.3 per cent to EUR6.4 billion mainly because of lower bunker consumption prices of $210 per tonne against $312 tonne in 2015.
Also cited were synergies from the integration of CSAV's container shipping business and cost saving programmes including improved fuel efficiency.
As at the December 31, Hapag-Lloyd had EUR5.1 billion in equity and a liquidity reserve, cash, cash equivalents and unused credit facilities of EUR760 million. Net debt amounted to EUR3.59 billion.