Hapag 9-month net profit doubles to $14.7bn

German carrier Hapag-Lloyd more than doubled group profit to $14.7 billion (€13.8 billion) on over 60 percent increase in freight rate to $2,938/TEU for the first nine months of 2022.

Transport volume was down marginally to 8.9 million TEUs but revenue increased 58 percent to $28 billion (€26.7 billion), says an official release.

"Thanks to higher freight rates, we have achieved an exceptionally strong nine-month result," says Rolf Habben Jansen, CEO, Hapag-Lloyd AG. "However, we are also seeing that the market environment has deteriorated further in the third quarter. This is evident, for example, in falling spot rates and rising inflation-related unit costs."

The first nine months were significantly marked by disruptions in the global supply chains, which resulted in longer turnaround times for ships and containers, the release added. "At the end of the third quarter, there was weaker demand for container transports and consequently a slight easing in the shortage of available transport capacities."

Transport expenses climbed to $10.8 billion (€10.1 billion) "due in part to a significantly higher bunker consumption price of $755 per tonne (9M 2021: $452 per tonne), and higher expenses for container handling.

"For the 2022 financial year, an EBITDA in the range of $19.5-21.5 billion (€18.2 to 20.1 billion) and an EBIT in the range of $17.5-19.5 billion (€16.3-18.2 billion) are still expected. However, this forecast remains subject to considerable uncertainty given Russia's war of aggression on Ukraine, supply chain disruptions that have not yet been fully resolved, and the effects of the Covid-19 pandemic."

Jansen adds: "In the coming months, the strained situation in the global supply chains should continue to normalise. At the same time, our strong balance sheet will help us to stay on course even in difficult waters. We will stick to our strategic agenda while investing more in quality and growth as well as in the further decarbonisation of our fleet. One very significant focus is investment in infrastructure, which we are using to further expand our terminal portfolio."

Hapag-Lloyd has expanded its involvement in the terminal sector, most recently through agreements on acquiring stakes in the terminal business of Chile-based SM SAAM and the Italy-based Spinelli Group. In addition, Hapag-Lloyd has stakes in JadeWeserPort in Wilhelmshaven, the Container Terminal Altenwerder in Hamburg, Terminal TC3 in Tangier, and Terminal 2 in Damietta, which is currently under construction, the release said.