Hapag-Lloyd slips back into the red

Hamburg, 13.05.2016 - Hapag-Lloyd closed the first quarter of 2016 with a positive operating result. While the transport volume increased by 2.1% to 1.81 million TEU in the first three months, the average freight rate fell significantly to USD 1,067/TEU (prior year period: USD 1,331/TEU). At EUR 1.93 billion, this meant that turnover fell significantly below the previous year's figure of EUR 2.30 billion.

The company reports that the negative effects of the difficult market environment were partially offset by cost-cutting and efficiency measures already implemented under the OCTAVE program launched in 2015 and a significantly lower bunker consumption price of USD 178/t on average (prior year period: USD 378/t). As a result, Hapag-Lloyd achieved positive EBITDA of EUR 123.4 million in the first quarter of 2016 (prior year period: EUR 283.6 million). EBIT amounted to EUR 4.8 million (prior year period: EUR 174.3 million) and the Group result was EUR -42.8 million (prior year period: EUR 128.2 million).

"In the seasonally weak first quarter, we achieved an acceptable result with a small operating profit and an EBITDA margin of 6.4%. This was not least due to the synergy effects realized so far from the merger with CSAV and the improvements in our cost base as a result of the OCTAVE program, which we implemented in 2015," said Rolf Habben Jansen, CEO of Hapag-Lloyd AG. Both together represent around USD 600 million in annual, permanent earnings effects compared to the cost base in 2014. "With the OCTAVE 2 program, we will further improve our cost base by a high, double-digit million dollar amount," Habben Jansen continued. The program was initiated at the end of 2015 and is to be implemented in the current financial year.

For 2016 as a whole, Hapag-Lloyd currently continues to expect a moderate increase in EBITDA and a significant rise in EBIT compared to the previous year.

With an equity ratio of around 45.3% (as at 31 March 2016), Hapag-Lloyd has a solid balance sheet structure. With a liquidity reserve of more than EUR 794.6 million, the Company is securely financed for the future.

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