Hapag H1 profit nearly triples to $9.5bn, outlook upgraded
Uncertainties remain due to war in Ukraine, ongoing disruptions in supply chains and Covid-19 pandemic.
German carrier Hapag-Lloyd group profit nearly tripled to $9.5 billion (€8.7 billion) on 77 percent higher freight rate ($2,855/TEU) for the first half of 2022.
While transport volume was flat at 6 million, revenue increased 76 percent to $18.6 billion (€17 billion) , according to an announcement today.
EBITDA came in at $10.9 billion (€10 billion) , and EBITDA margin improved to 59 percent.
"We have benefitted from significantly improved freight rates and look back on an extraordinarily strong business performance on the whole in the first half year," says Rolf Habben Jansen, CEO, Hapag-Lloyd. "At the same time, a steep rise in all cost categories is putting increased pressure on our unit costs."
The result was impacted by significantly higher expenses for container handling and charter ships as well as by a 67 percent increase in average bunker consumption price to $703 per tonne (H12021: $421 per tonne), the statement said.
"Based on the current business performance, the second half year is also likely to exceed previous expectations." The board had, on July 28, increased the EBITDA to the range of $19.5-21.5 billion (€18.2-20.1 billion) and an EBIT in the range of $17.5-19.5 billion (€16.3-18.2 billion) for the financial year 2022. However, the forecast remains subject to considerable uncertainty given the war in Ukraine, the ongoing disruptions in the supply chains, and the impacts of the Covid-19 pandemic, the statement added.
"We are currently seeing the first signs in some trade lanes that spot rates are easing in the market. Nevertheless, we are expecting a strong second half of the year. The currently still strained situation in the global supply chains should improve after this year's peak season. Our customers can continue to rely on us to do everything in our power to transport their goods to their destination as smoothly as possible. At the same time, we will continue to focus on our quality and sustainability goals as well as on further implementing our Strategy 2023," Jansen added.
Hapag-Lloyd's fleet was 253 container vessels as on June 30, 2022 compared to 250 vessels during the same period last year. The capacity, as on June 30, 2022, was 1,771.4 TTEU, marginally higher from June 30, 2021 (1,760.8 TTEU).