Hapag-Lloyd's big leap forward
On the basis of preliminary, not yet validated figures, the Hamburg-headquartered carrier Hapag-Lloyd achieved higher revenues and more profit in the 2019 financial year. The growth in revenues was considerable, by approximately 9%, coming up to EUR 12.6 billion (2018: EUR 11.6 billion).
The earnings before interest and taxes (ebit) for the 2019 financial year significantly increased by 45% to EUR 811 million (2018: EUR 444 million). Earnings before interest, taxes, depreciation and amortisation (ebitda) rose by 43% to EUR 1.99 billion (2018: EUR 1.14 billion).
The main drivers of the positive business developments were improved freight rates as well as cost and revenue management, as the carrier said in a press release. Yet, the 2019 results include special effects from the first-time application of the IFRS 16 accounting standard, which amount to approximately EUR 31 million for ebit and approximately EUR 467 million for ebitda.
The average freight rate of 1,072 USD/teu for the year as a whole rose by 2.6% (2018: 1,044 USD/teu) due to a stronger focus on more profitable trade lanes.
In addition, a moderate 1.4% year-on-year increase in transport volumes to more than 12 million teu (2018: 11.9 million teu), and a stronger USD exchange rate against the EUR took their toll as well as lower expenses for the handling and inland transport of containers as well as a slightly lower average bunker consumption price.
Hapag-Lloyd will publish its 2019 annual report and an outlook for the current financial year on 20 March 2020. (mw)