Subscribe Login
DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
Supply Chain

Hapag-Lloyd Ups H1 Profits And Keeps Guidance, But Warns Of Risks

By Dayeeta Das
Share this article
Hapag-Lloyd Ups H1 Profits And Keeps Guidance, But Warns Of Risks

German container shipping line Hapag-Lloyd on Wednesday reported preliminary results for the first half of 2020 showing core profits above those of the same 2019 period and upholding its guidance for full year earnings.

However, the company said in an ad hoc announcement that the forecast was subject to "high uncertainty" due to risks related to the coronavirus crisis and its impact on the macroeconomy and global shipping.

Hapag Lloyd achieved a 20.3% year-on-year rise in earnings before interest, tax, depreciation and amortisation (EBITDA) to €1.15 billion ($1.31 billion) and a 28.5% increase in earnings before interest and tax (EBIT) to around €500 million in the six months, it said.

Full-year EBITDA should be €1.7 billion to €2.2 billion and EBIT €0.5 billion - €1.0 billion, it reiterated.

Analysts see a chance that container shipping companies, helped by cost discipline and the resumption of Chinese business activities, can prevent a steep decline in freight rates and benefit from a tentative recovery later in 2020.

ADVERTISEMENT

Hapag-Lloyd has added several hundred million euros to its €1.1 billion - €1.2 billion reserve, allowing its operations to continue unhindered for 12 to 18 months should demand problems outside China linger, chief executive Rolf Habben Jansen said in May.

Final first half figures will be published on 14 August.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

Get the week's top grocery retail news

The most important stories from European grocery retail direct to your inbox every Thursday

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our terms & conditions and privacy policy. You can unsubscribe at any time.