Hapag-Lloyd reports 14% increase in transport volume in H1 2017
German based Hapag-Lloyd delivered significantly better operating result and healthy volume growth in H1, 2017.
August 29, 2017: German based Hapag-Lloyd delivered significantly better operating result and healthy volume growth in H1, 2017. The transport volume grew by 14 percent in the first six months, to 4.22 million TEU, which includes almost 250,000 TEU from UASC-Group which was consolidated from 24 May onwards.
The merger with United Arab Shipping Company (UASC) on 24 May 2017 helped the Company to strengthen its market position and climb to fifth place among the world’s liner shipping companies.
The combined freight rate of 1,056 USD/TEU is 1 percent above the Hapag-Lloyd rate of the first half of 2016. Revenue rose by EUR 732.8 million to EUR 4,518.3 million against EUR 3,785.5 million in the same period last year, which includes EUR 199.0 million from the inclusion of the UASC Group.
Hapag-Lloyd generated an operating result before interest, taxes, depreciation and amortisation (EBITDA) of EUR 360.4 million in the first half year of 2017 (prior-year-period: EUR 196.7 million). EBIT rose to EUR 87.3 million (prior-year period: EUR -39.7 million), and the Group net result was EUR -46.1 million (prior-year period: EUR -142.1 million). The half year result includes a number of one-off effects related to the UASC transaction (net impact on EBIT: approximately EUR -19.0 million). In the second quarter of 2017, the Group delivered an EBIT of EUR 83.8 million (prior-year period: EUR -44.5 million) and a net result of EUR 16.0 million (prior-year period: EUR -99.3 million).
“The market in container shipping remains challenging, but we have managed to make very good progress in the first half year of 2017. We improved profitability significantly, and the integration of UASC will be largely completed in the third quarter. That will allow us to start capturing synergies very soon after the integration,” said Rolf Habben Jansen, CEO of Hapag-Lloyd AG.
Overall, the merger with UASC is expected to generate annual savings of USD 435 million from 2019 onwards, the majority of the savings will already be realised in 2018. For 2017, Hapag-Lloyd expects that its transport volume will increase, bunker cost grown in the first half of 2017 and will remain on that level for the rest of the year, and the average freight rate will be unchanged compared to 2016. EBITDA and EBIT will clearly exceed the previous year’s level.