German shipping major reports positive Q3 results
8 Nov 2018 - by
Freight transport company Hapag-Lloyd ended the third quarter of 2018 with higher earnings before interest and taxes of €212.1 million and a significantly improved group net result of €113.4 million compared to the same period last year.
In the first nine months of the year, revenues amounted to €8.4 billion compared to €7.3 billion for the same period in 2017.
This could largely be attributed to a 27% increase in transport volume, which rose to 8 900 TEUs from 7 029 TEUs, resulting from the company’s merger with United Arab Shipping Company (UASC).
Earnings before interest, taxes, depreciation and amortisation rose to €813.7 million in the first nine months of 2018, against €722.8 million reported in the same period last year.
“Higher transport volumes, a better utilisation of our ships and the synergies from the recent merger with UASC have enabled us to partially offset rising operational costs,” said Hapag-Lloyd CEO Rolf Habben Jansen. “In addition, the average freight rate improved during the peak season in important trades.”
The average freight rate decreased to 1 032 US$/TEU in the first nine months of this year from 1 068 US$/TEU in 2017. Meanwhile, bunker prices rose by US$95/tonne in the first nine months in 2018 and could not be fully offset by freight rate increases in the third quarter.