Integration of UASC drives Hapag-Lloyd’s Q3 profit surge

Port cranes over the water into clouds

November 15, 2017 - German container carrier Hapag-Lloyd closed the third quarter of the year with EUR 54.3 million of net profit (USD 64.1 million), a significantly bolstered earnings when compared to the net profit of EUR 8.2 million posted in the same quarter a year earlier.

The Q3 EBIT rose to EUR 180.6 million from corresponding EUR 65.6 million in 2016, and the EBITDA stood at EUR 361.5 million also up from prior-year period’s EUR 184.6 million, the company said.

“The good operating result that we have achieved after three quarters is not only due to the positive development of the global economy and the increasing global container transportation volume,” said Rolf Habben Jansen, CEO of Hapag-Lloyd AG.

“The quick and smooth integration of United Arab Shipping Company (UASC) into the Hapag-Lloyd Group has also played a crucial role. We have already been able to realize the first synergies resulting from the merger which will help us to further solidify our position in the sector.”

The integration with UASC is almost completed and on schedule to be finalized by the end of the year, the German carrier said.

In the first nine months of 2017, Hapag-Lloyd was able to achieve an EBITDA and EBIT of EUR 721.9 million and EUR 267.9 million, rebounding from EUR 381.3 million and EUR 25.9 million respectively reported in 2016.

The company also saw a positive profit result after taxes of EUR 8.2 million, bouncing back from a loss of EUR -133.9 million, booked last year.

Transport volume increased by 24.4% in the first nine months, from 5.65 million TEU to 7.03 million TEU.

Freight rates continued to recover in the third quarter, standing at 1,060 USD/TEU after nine months.

The basic parameters for the 2017 forecast remain unchanged from those published in the 2017 half-year financial statement.

“Hapag-Lloyd continues to expect a significant rise in transport volumes, a significant rise in bunker price and an unchanged average freight rate. EBITDA and EBIT are also expected to rise significantly,” the company added.

Source: World Maritime News