Posted on August 14, 2023
- Subdued demand continues in the first half of 2023
- Earnings forecast for 2023 as a whole confirmed
- Continued focus on formulating ‘Strategy 2030’
Hapag-Lloyd has concluded the first half of 2023 with an EBITDA of USD 3.8 billion (EUR 3.5 billion) and an EBIT of USD 2.8 billion (EUR 2.6 billion). The Group profit stood at USD 3.1 billion (EUR 2.9 billion). As expected, these results are significantly below the prior-year level.
Transport volumes experienced a year-on-year decline of 3.4 percent, to 5,807 TTEU (H1 2022: 6,012 TTEU), primarily owing to lower demand for container transports on the Far East and European trade routes to North America. In addition, a lower average freight rate of 1,761 USD/TEU (H1 2022: 2,855 USD/TEU) was particularly responsible for the decline in revenue, which decreased to USD 10.8 billion (EUR 10.0 billion). Transport expenses were below the prior-year level, at USD 6.3 billion (EUR 5.9 billion), primarily due to lower expenditures for demurrage and detention and a decreased bunker consumption price of USD 625 per tonne (H1 2022: USD 703 per tonne).
“Weaker demand and lower freight rates are having a very noticeable impact on our earnings. 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,” said Rolf Habben Jansen, CEO of Hapag-Lloyd AG.
For the full year 2023, Hapag-Lloyd confirms the forecast it published on 2 March. EBITDA is expected to be in the range of USD 4.3 to 6.5 billion (EUR 4 to 6 billion) and EBIT to be in the range of USD 2.1 to 4.3 billion (EUR 2 to 4 billion). However, the ongoing war in Ukraine, geopolitical uncertainties, persistent inflationary pressures and high inventory levels are creating risks that could negatively impact the forecast.
The report for the first half year of 2023 is available online here.
With a fleet of 258 modern container ships and a total transport capacity of 1.9 million TEU, Hapag-Lloyd is one of the world’s leading liner shipping companies. The Company has around 14,000 employees and 400 offices in 135 countries. Hapag-Lloyd has a container capacity of 2.9 million TEU – including one of the largest and most modern fleets of reefer containers. A total of 115 liner services worldwide ensure fast and reliable connections between more than 600 ports on all the continents. Hapag-Lloyd is one of the leading operators in the Transatlantic, Middle East, Latin America and Intra-America trades.