German shipping major reports positive Q1 results
15 May 2018 - by
Freight transport company Hapag-Lloyd ended the first quarter on a positive note with a significant increase in its operating profit compared to the same period in 2017.
Revenue was up from €2.1 billion in Q1 2017 to €2.6 billion this quarter while earnings before interest, taxes, depreciation and amortisation in the first three months of this year were €219.4 million compared to the €135.3 million recorded in the first three months of 2017.
The group net result increased by €23.8 million to -€34.3 million over the quarterly result in the previous year.
Hapag-Lloyd CEO, Rolf Habben Jansen, said that earnings – which included the United Arab Shipping Company – had been impacted by a lower average exchange rate and higher bunker prices alongside an average freight rate which reflected the competitive market environment.
“We have had a solid start to the current year, but the market environment is challenging. Freight rates have been under pressure, bunker costs and trucking costs in some important markets were up, and we faced a weaker US dollar, whereas higher transport volumes and synergies supported the result,” he said.