Hapag-Lloyd's 2019 ebit up 80pc to US$908m, accenting profitable trades
GERMAN container shipping giant Hapag-Lloyd improved its year-on-year earnings before interest and tax (Ebit) by 80 per cent to EUR811 million (US$908 million)
GERMAN container shipping giant Hapag-Lloyd improved its year-on-year earnings before interest and tax (Ebit) by 80 per cent to EUR811 million (US$908 million). Earnings before interest, taxes, depreciation and amortisation (Ebitda) rose to EUR1.98 billion ($2.22 billion), up from EUR1.14 billion in 2018.
The 2019 results include effects from the first-time application of the IFRS 16 accounting standard, which amount to EUR31 million for Ebit and EUR467 million for Ebitda.
Both Ebitda and Ebit in the fourth quarter of 2019 also were above prior-year levels. Ebitda in Q4 2019 was EUR475 million compared to EUR327 million in 2018. Ebit in Q4 2019 was EUR169 million compared to EUR144 million in the same period in 2018.
Revenues rose in the 2019 financial year by nine per cent year on year to EUR12.6 billion. The carrier attributed this to an improved average freight rate of $1,072 per TEU, a 2.6 per cent increase year on year 'due to a stronger focus on more profitable trade lanes and active revenue management.'
'In addition, a 1.4 per cent year-on-year increase in transport volumes to 12 million TEU and a stronger US dollar exchange rate against the euro also made a positive contribution to revenues,' the company said in the earnings release.
Lower expenses for the handling and inland transport of containers as well as a slightly lower average bunker consumption price of $416 per tonne, compared to $421 per tonne in 2018, had a positive effect on transport expenses, which increased to EUR9.7 billion in 2019 from EUR9.6 billion in 2018, Hapag-Lloyd said.
The carrier has a fleet of 231 containerships with a combined capacity of 2.6 million TEU. The company has 13,000 employees and 392 offices in 129 countries.