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Published: 17 May 2017
Hapag-Lloyd up in Q1 2017
On the back of higher volumes, Hapag-Lloyd finished the first three months of the current financial year with a positive operating result, in spite of higher bunker prices and lower freight rates
Transport volume increased by 6.8% year-on-year to more than 1.9M TEU. While the average freight rate was US$20 lower than in Q1 2016 at US$1,047/TEU, there were further signs of a slight upward curve compared with the past quarters.
The greater transport volume and exchange rate effects pushed revenue up by 10.4% to €2.13 billion (prior-year period: €1.93B). EBITDA improved by 6.4% to €131.3M, while EBIT remained relatively unchanged year-on-year at €3.5M. The Group net result was lower than in Q1 2016 at - €62.1M (prior-year period: - €42.8M).
Rate increases were successfully introduced in a number of trades, says Hapag-Lloyd, even though the industry environment remains challenging, but these rate increases are only going to have an impact on the company’s result later in the year.
Meanwhile, the Q1 2017 result was noticeably affected by ongoing bunker price increases. At US$313/tonne, the average bunker price was well above the previous year’s figure of US$197/tonne. This is the highest level seen since June 2015.
“Our activities in the first quarter focused on preparations for the merger with UASC and on the launch of our new alliance," said Rolf Habben Jansen, CEO of Hapag-Lloyd AG.
"The launch of the THE Alliance went well, and the merger with UASC will be closed shortly. After the closing our priority will be to integrate UASC into Hapag-Lloyd quickly and to realize initial synergies from the merger.”
Overall, the merger with the Arabian liner shipping company is expected to generate annual savings of US$435M from 2019 onwards, with a large proportion of this already to be achieved in 2018.