Indian Transport & Logistics

Hapag H12023 profit drops to $3.1bn, confirms 2023 forecast

Average freight rate of $1,761/TEU (H12022: $2,855/TEU) was down 38%, volume declined 3.4% YoY to 5.8 million TEUs

Hapag H12023 profit drops to $3.1bn, confirms 2023 forecast
Listen to this Article

German carrier Hapag-Lloyd reported a 42 percent decline in revenue to $10.8 billion for the first half of 2023 compared to the same period last year on 38 percent decline in average freight rate and three percent decline in volumes.

Transport volumes experienced a year-on-year decline of 3.4 percent to 5.8 million TEUs (H12022: 6 million TEUs), primarily owing to lower demand for container transports on the Far East and European trade routes to North America. The average freight rate of $1,761/TEU (H12022: $2,855/TEU) was down 38 percent, says an official release.

Hapag-Lloyd's EBITDA was $3.8 billion, EBIT was $2.8 billion and the group profit stood at $3.1 billion, a drop of 67 percent from $9.5 billion in H12022.

Rolf Habben Jansen, CEO, Hapag-Lloyd

“Weaker demand and lower freight rates are having a very noticeable impact on our earnings," says Rolf Habben Jansen, CEO, Hapag-Lloyd. "In a challenging market environment, we can look back on a successful first half year overall, in which we were able to expand our terminal portfolio while also significantly boosting our customers’ satisfaction thanks to our focus on quality. In the second half of the year, we will continue to focus on formulating our ‘Strategy 2030’. This strategy will guide us forward on our strategic path to success in 2024."

For the full year 2023, Hapag-Lloyd confirms the earlier forecast - EBITDA is expected to be in the range of $4.3-6.5 billion and EBIT to be in the range of $2.1-4.3 billion. The ongoing war in Ukraine, geopolitical uncertainties, persistent inflationary pressures and high inventory levels are creating risks that could negatively impact the forecast, the update added.

Main developments in H12023

*With the acquisition of a 49 percent minority interest in the Italian Spinelli Group in January 2023 and a 40 percent interest in J M Baxi Ports & Logistics in April 2023, the Group further expanded its involvement in the terminal sector.

The acquisition of SM SAAM’s terminal business was completed on August 1, 2023, comprising ten terminals in six countries in North, Central and South America as well as related logistics services in Chile.

Hapag-Lloyd’s fleet consisted of 258 container vessels as on June 30, 2023,(June 30, 2022: 253) with a transport capacity of 1.9 million TEUs (June 30, 2022: 1.8 million TEU). In the first six months of 2023, Hapag-Lloyd served approximately 25,600 customers around the world (prior year period: approximately 27,400).

Read Full Article
Next Story
Share it