Major Return to Profit for Hapag-Lloyd

first_imgzoom German shipping company Hapag-Lloyd has delivered EUR 114 million (USD 127.3 million) net profit in a challenging market environment against EUR 604 million loss posted in 2014.EBITDA amounted to EUR 831 million, also a major rebound from the previous year of EUR 99 million and the operating result of EUR 366 million against EUR -383 million.“Hapag-Lloyd has delivered what we promised. Also in comparison with our main competitors, Hapag-Lloyd has made up tremendous ground and is back among the top performers in the industry,” said Rolf Habben Jansen, CEO of Hapag-Lloyd AG.“We’ve worked hard for this success by quickly integrating CSAV’s container business and by exploiting the synergies, as well as with the OCTAVE cost-cutting and efficiency programme, which will make a total earnings contribution of in total USD 600 million from 2016. More than 70% of the expected result improvements have been realized in 2015 already. On the back of this success, we already launched OCTAVE 2 towards the end of 2015. In this programme we have again identified promising potential that should further improve our efficiency.” In 2015, Hapag-Lloyd’s transport volume rose by 25.3% year on year to 7.401 million TEU, the company said. Revenue reached EUR 8.842 billion in the past financial year, following EUR 6.808 billion in the previous year. The increases in volume and revenue were primarily attributable to the acquisition of CSAV’s container activities.According to Jansen, the company is well positioned thanks to its balanced portfolio across all trades and “strong presence in attractive niche markets such as reefer, special cargo, dangerous goods or cabotage.”As disclosed, the development of the business so far in 2016 is in line with expectations.“We believe that the ongoing consolidation and the upcoming new alliance set-up should add stability to the market, and that there will be some recovery of the market,” Jansen said.Hapag Lloyd believes that the year-on-year improvement in equity to EUR 5.046 billion (equity ratio: 45.5%) and the increased liquidity reserve of EUR 962 million serve as a solid basis for exploiting additional growth opportunities.last_img