GERMAN container shipping group Hapag Lloyd has achieved a net profit for the third quarter by posting net earnings of EUR3.2 million (US$3.4 million) in the three-month period to end of September compared to a net loss of EUR50.7 million for the same period last year.
The newly-listed company, which raised $300 million from an initial public offering (IPO) earlier this month, said it benefitted from the merger with Chile's CSAV in December 2014 and additional cost cuts.
CEO of Hapag-Lloyd, Rolf Jansen, said: "The third quarter proved once more that the merger with CSAV was the right step and that our cost reduction measures are making us competitive. With the proceeds from the IPO, we will be able to invest in the future to further improve efficiency and profitability."
Third-quarter revenues increased to EUR 2.1 billion from EUR 1.7 billion euros with higher transport volumes.
During the third quarter, the average freight rates were down to $1,189 per TEU compared to $1,448 in the year-earlier period. However, Hapag-Lloyd benefitted from lower oil prices and saw transport costs per container decrease by $240 to $1,111 in the first nine months.
The market environment remains "very challenging", Mr Jansen said in a statement.
In the first nine months Hapag-Lloyd recorded a net profit of EUR160 million compared to a loss of EUR 224 million in the same period last year. Revenue during the period increased by EUR1.9 billion to EUR 6.8 billion compared to the first nine months of last year.
Transport volume rose 28.3 per cent to 5.6 million TEU in the first nine months of2015 and the average freight rate in the first nine months of 2015 came in at $1,260 per TEU, 12 per cent below the same period of 2014.
Transport expenses per TEU decreased by $240 to $1,111 per TEU in the first nine months of 2015 mainly due to reduced bunker prices and a decline in bunker consumption.
WORLD SHIPPING
12 November 2015 - 20:43
Hapag-Lloyd in the blue after merger with Chile's CSAV
GERMAN container shipping group Hapag Lloyd has achieved a net profit for the third quarter by posting net earnings of EUR3.2 million (US$3.4 million) in the three-month period to end of September compared to a net loss of EUR50.7 million for the same period last year.
WORLD SHIPPING
12 November 2015 - 20:43
Hapag-Lloyd in the blue after merger with Chile's CSAV
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