Hapag-Lloyd has adjusted its expectations for the financial year
Hapag-Lloyd records a strong start to the year with first quarter results that are significantly higher than the same period last year.
Group profit climbed to US$4.7bn from US$1.5bn in 2021, while EBITDA was recorded at US$5.3bn and EBIT rose to US$4.8bn.
Rolf Habben Jansen, CEO of Hapag-Lloyd AG, said: “The year has got off to an exceptionally strong start on the whole, and whilst there have been first signs that the market has passed its peak, we also expect a strong second quarter.”
Revenues rose in the first quarter to US$9bn, up from US$5bn in 2021, which can primarily be attributed to a much higher freight rate of US$2,774 per teu (US$1,509 in Q1 2021) and a stronger US dollar.
Transport volumes have remained roughly on par with the prior-year level at 3m teu as congestion continues at many ports and hinterland structures are still strained, resulting in longer turnaround times for ships and containers.
The result was impacted by significantly increasing expenses for container handling and a roughly 60% higher average bunker consumption price, which stood at US$613 per tonne in Q1 2022 compared to US$384 in 2021.
Hapag-Lloyd expects the second quarter to exceed earlier expectations based on the current business performance and, in view of this, the company’s executive board has raised its earnings forecast for the current financial year.
For the 2022 financial year, an EBITDA in the range of US$14.5bn to US$16.5bn and an EBIT in the range of US$12.5bn and US$14.5bn are now expected.
This forecast, however, remains subject to considerable uncertainty given the ongoing COVID-19 pandemic and the war in Ukraine.
Habben Jansen added: “Global supply chains continue to be under significant pressure – not least because of the recent measures taken in China in response to COVID-19 outbreaks. This situation is expected to improve in the second half of the year.
“For our customers worldwide, we will do everything in our power to help normalise this difficult market environment as quickly as possible. At the same time, we will continue to focus on quality and sustainability and further implement our strategy 2023.”
