Hapag-Lloyd Q1 2024 revenues decrease

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Hapag-Lloyd’s Q1 2024 saw a Group EBITDA of US$942M, a decline in EBIT to US$396M, and profit to US$325M, despite a 6.8% rise in transport volumes to 3M TEU.

Hapag-Lloyd concluded the first quarter of 2024 with a Group EBITDA of US$942 million (EUR868 million).

Compared to the same quarter of the previous year, the Group EBIT decreased to US$396 million (EUR365 million) and the Group profit to US$325 million (EUR299 million).

In the Liner Shipping segment, the transport volumes for the first quarter of 2024 increased by 6.8%, to 3 million TEU (Q1 2023: 2.8 million TEU).

Transport expenses were on a par with the same quarter of the previous year, at US$3.3 billion (EUR3 billion). Although costs rose significantly due to the rerouting of ships around the Cape of Good Hope, these were largely offset by active cost management.

Revenues decreased to US$4.6 billion (EUR4.3 billion), primarily owing to a lower average freight rate of 1,359 USD/TEU (Q1 2023: 1,999 USD/TEU).

Compared to the same quarter of the previous year, the EBITDA decreased to US$906 million (EUR835 million) and the EBIT to US$378 million (EUR348 million).

In the Terminal & Infrastructure segment, an EBITDA of US$35 million (EUR32 million) and an EBIT of US$18 million (EUR16 million) were achieved in the first quarter of 2024.

The new segment was only created in the second half of 2023 and is currently being established. For this reason, the figures for the first quarter of 2024 are only comparable with the prior-year figures to a limited extent.

“Even though our results are significantly below the exceptionally strong figures from the previous year owing to the normalisation of supply chains, we are pleased to have got the new year off to a good start. The rates stabilised in the first quarter due to the rerouting of ships around the Cape of Good Hope and higher demand for capacity. The numerous new ships that have been and will be delivered across the industry in 2024 have been instrumental in keeping the Supply Chains going without too much disruption. Going forward, we must keep a close eye on our costs, and we will continue the implementation of our Strategy 2030 – with the main focus on our decarbonisation initiatives and our promise to be the undisputed number one for quality for our customers,” said Rolf Habben Jansen, CEO of Hapag-Lloyd AG.

Given the positive business performance in the first quarter of 2024, the Executive Board has refined its forecast for the current financial year, published on 14 March 2024.

The Group EBITDA is now expected to be US$2.2 to 3.3 billion (EUR2 to 3 billion) and the Group EBIT to US$ 0 to 1.1 billion (EUR 0 to 1 billion).

According to the company, it is still assumed that a large part of the projected result will be generated in the first half of the year, and because of the highly volatile development of freight rates and major geopolitical challenges, this forecast remains subject to a high degree of uncertainty.

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