GERMAN shipping company Hapag-Lloyd has posted a group net loss of EUR7.3 million (US$8.97 million) for the second quarter 2012 amid "extreme pressure on costs".
Second quarter revenue amounted to EUR1.8 billion, an increase of 21 per cent compared to the same quarter a year earlier.
During the quarter under review, the company generated an operating profit of EUR30.8 million (adjusted EBIT), improving on its second quarter performance in 2011 by 18 per cent. EBITDA came in at EUR102 million, up from EUR85 million for the corresponding period a year earlier.
In a release, the company attributed the improved result to the successful implementation of freight rate increases, which started to become effective in the second quarter. It said further rate hikes will be "unavoidable". The weighted average freight rate rose by 7.4 per cent in the second quarter, taking it to US$1,594 per TEU. This was US$110/TEU higher than in the first quarter and US$63/TEU up on the same period a year earlier.
"Hapag-Lloyd increased the rate level very successfully in the second quarter. Following on from Q1, which is always seasonally weak. This means that we returned to operating profitability because we have a highly efficient cost management system and have consistently prioritised price quality over transport volume. However, the further increase in expenses for bunker and other energy costs prevented us from posting an even better result," said Michael Behrendt, chairman of the executive board.
In the first six months of the year, revenue rose 14 per cent to EUR3.4 billion year on year.
The shipping line transported 2.68 million TEU in the first half, up 5.8 per cent year on year. The transport volume totalled 1.36 million TEU in the three months to June, up two per cent year on year.
Transport expenses for the first half were up by a total of EUR561 million on last year, which is equivalent to a 22 per cent rise. EBITDA totalled EUR80.9 million in the six months to June, while the adjusted EBIT amounted to a loss of EUR68.7 million, which it attributed to a "seasonally weak first quarter."
In the second quarter, Hapag-Lloyd had to cope with a EUR330 million in transport expenses, an increase of 26 per cent against the same period of last year, mainly due to soaring energy prices, with average bunker fuel costs rising to US$694 per tonne during the quarter versus an average of US$605/tonne in 2011, up from US$453/tonne in 2010. As well as affecting bunker, the rising energy prices also impacted on services provided by terminal operators and carriers using inland waterways, rail and road networks, which are services the shipping line buys worldwide.
Investments of EUR494.6 million were made in the first half, with most of the funds going towards ships and containers. Long-term financing has been secured successfully for the vessels on order. In July, the company took delivery of the first of ten 13,200-TEU newbuilds.
Looking ahead the company said it is "striving to post positive operating earnings again for the current financial year, provided that there is no fundamental escalation of the risks and assuming it proves possible to implement further rate increases in the course of 2012."
CONTAINER
21 August 2012 - 20:50
Hapag-Lloyd reduces quarterly loss on 21pc higher revenue, improved rates
GERMAN shipping company Hapag-Lloyd has posted a group net loss of EUR7.3 million (US$8.97 million) for the second quarter 2012 amid "extreme pressure on costs".
CONTAINER
21 August 2012 - 20:50
This news 9173 hits received.
These news may also interest you