Hapag-Lloyd reports strong Q3 results
The company's transport volumes increased by 5% compared to the prior-year period.
Source: hapaglloydag/ Instagram
Hapag-Lloyd, a leading global shipping company, has reported a strong financial performance for the first nine months of 2024. Despite challenging market conditions, including lower freight rates in the first half of the year and increased transport expenses due to the rerouting of ships around the Cape of Good Hope, the company achieved a Group EBITDA of USD 3.6 billion (EUR 3.3 billion) and a Group profit of USD 1.8 billion (EUR 1.7 billion).
The company's transport volumes increased by 5% compared to the prior-year period, reaching 9.3 million TEU (twenty-foot equivalent units). This growth was driven by stronger demand and higher freight rates, particularly in the third quarter.
Hapag-Lloyd's Liner Shipping segment reported a decrease in segment revenues of 2% to USD 15.0 billion (EUR 13.8 billion), primarily due to lower average freight rates. However, the segment's EBITDA and EBIT remained strong, at USD 3.5 billion (EUR 3.2 billion) and USD 1.9 billion (EUR 1.7 billion), respectively.
The company's Terminals & Infrastructure segment reported a significant increase in sales and earnings, with EBITDA rising to USD 114 million (EUR 105 million) and EBIT increasing to USD 56 million (EUR 51 million).
“The first nine months of 2024 were marked by unexpectedly strong demand. Despite the tense security situation in the Red Sea and the associated rerouting of ships, we were able to further increase our transport volume compared to the previous year and can look back on a good result overall.” said Rolf Habben Jansen, CEO of Hapag-Lloyd AG. He also highlighted the company's efforts to modernise and decarbonise its fleet, as well as its expansion into the terminal business.
Based on its strong performance, Hapag-Lloyd raised its earnings forecast for the current financial year. The company now expects its Group EBITDA to be in the range of USD 4.6 to 5.0 billion (EUR 4.2 to 4.6 billion) and its Group EBIT to be in the range of USD 2.4 to 2.8 billion (EUR 2.2 to 2.6 billion).
