PortandTerminal.com, October 15, 2020
Hapag-Lloyd joins Maersk in updating its full-year earnings guidance | Reports better than expected results in third quarter | Raises guidance for 2020
HAMBURG – Hapag-Lloyd, the fifth-largest container shipping company in the world, said the performance of the container shipping market in the third quarter of 2020 was much better than expected pushing up earnings.
Based on the preliminary findings, Hapag-Lloyd’s earnings before interest and taxes (EBIT) for the third quarter 2020 significantly increased to around €350 million ($409 million), an increase of 38% over 2019.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to around €650 million ($760 million), an increase of 17% over 2019. Volumes were 3 per cent under previous year, but much better than expected some months ago.
Hapag ascribed the positive business developments to significantly higher demand and transport volumes, combined with rigorous cost and revenue management.
As a result, the company updated its EBITDA and EBIT guidance from €1.1 to 1.3 billion and an EBITDA of €2.4 to 2.6 billion respectively.
“Thanks to the positive market development and the wide range of measures we have introduced in recent months, we expect a financial year with results well above our previous forecast,” Chief Executive Officer Rolf Habben Jansen commented.
Hapag-Lloyd’s upgraded forecast comes days after industry major Maersk lifted its guidance for 2020 amid quicker than expected market recovery.
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