Hapag-Lloyd confirms that EBIT will increase by 65% in 2020

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Like other shipping companies, with the increase in demand, soaring freight prices, cost savings and increased revenue, Lloyd’s revenue in 2020 has been improved. The overall business volume has declined, but the revenue has soared by 65%.

German shipping company reported an increase in earnings before interest, taxes, depreciation and amortization (EBITDA) of US$3 billion (€2.7 billion) and an improved net result of US$1.1 billion (€935 million), although revenue increased by approximately 3% year-on-year , US$14.6 billion (€12.8 billion) and interest and taxes (EBIT) rose to US$1.5 billion (€1.3 billion).

According to Hapag-Lloyd’s data, the main reason was the cost savings of more than 500 million U.S. dollars (450 million euros), including lower fuel prices, and a 4% increase in average freight, reaching 1,115 U.S. dollars/TEU.

“After the transportation volume fell in the second quarter, we can benefit from the unexpectedly strong demand for container transportation in the second half of this year” said Rolf Habben Jansen, CEO of hapag lloyd AG, who continued to comment, “Therefore, we concluded that A better result than the major improvements achieved in 2019. After a few years, we have been able to obtain the cost of capital for the first time in 10 years.”

At the same time, the traffic volume at the end of the year was slightly lower than the previous year’s level, at 11.8 million TEUs, instead of 12 million TEUs in 2019, “but significantly higher than the expected level at the beginning of the epidemic,” the Hamburg-based company said. The line pointed out.

In view of the gratifying financial results, Hapag-Lloyd AG’s executive board and supervisory board have proposed a dividend of 3.50 euros per share in the 2020 fiscal year.

In addition, Hapag-Lloyd expects the 2021 fiscal year’s data to improve again, as they expect that the transportation volume will increase, the average freight will increase significantly, and the average fuel price will increase significantly.

However, the German company said that it is not yet ready to release a detailed earnings outlook because the forecast is still uncertain due to many factors.

“2021 will also be dominated by the global coronavirus pandemic, and the current supply chain bottlenecks are expected to be significantly eased only in the second half of this year. Jansen added, “Thanks to the continued strong demand for consumer products, we have made this fiscal year A very positive start. “And Hapag-Lloyd’s boss concluded, “Even if the global vaccination campaign hints at the first step towards normalcy, the risks associated with the pandemic will still exist temporarily. ”

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