Hapag-Lloyd has reported its results for the first nine months (9M) of 2024, recording a Group profit of €1.7 billion ($1.8 billion).
The Group’s EBITDA reached €3.3 billion ($3.6 billion), while EBIT stood at €1.8 billion ($1.9 billion).
The results have come in lower than the previous year, as projected, due to lower freight rates in the first half of 2024 and greater transportation expenditures as a result of ship rerouting around the Cape of Good Hope.
However, better demand and higher freight rates in the third quarter resulted in a considerable rise in earnings over the previous quarters of 2024.
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In the Liner Shipping industry, transport volumes climbed by 5 per cent in the first nine months of 2024 to 9.3 million TEUs, up from 8.9 million TEUs in the previous year (9M 2023).
Segment sales decreased by 2 per cent to €13.8 billion ($15.0 billion), owing to a lower average freight rate of $1,467/TEUs compared to the same period last year (9M 2023: $1,604/TEUs).
The EBITDA dropped to €3.2 billion ($3.5 billion). The EBIT declined to €1.7 billion ($1.9 billion).
The Terminals & Infrastructure division saw considerable growth in revenue and profitability in the first nine months of 2024.
The EBITDA increased to €105 million ($114 million), and the EBIT to €51 million ($56 million). Since the section was created in the second half of 2023, the results are only partially comparable to previous years’ numbers.
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Rolf Habben Jansen, CEO of Hapag-Lloyd AG, said: “The first nine months of 2024 were marked by unexpectedly strong demand. Despite the tense security situation in the Red Sea and the associated rerouting of ships, we were able to further increase our transport volume compared to the previous year and can look back on a good result overall.
“At the same time, we have commissioned an extensive newbuild program for 24 ships, with which we will further modernise and decarbonise our fleet and thereby secure our long-term competitiveness. In addition, we have made good progress in building up our terminal business under the Hanseatic Global Terminals brand.”
In light of recent higher-than-expected demand and improved freight rates, and despite rising transportation costs, Hapag-Lloyd’s Executive Board updated its prediction for the current fiscal year on 24 October 2024.
The Group EBITDA is forecast to be between €4.2 and 4.6 billion ($4.6 to 5.0 billion), while the Group EBIT will be between €2.2 and 2.6 billion ($2.4 to 2.8 billion).
