Despite the negative impacts that the COVID-19 pandemic has brought within the shipping industry, the container major Hapag-Lloyd, informed that its profits for the first half of the year were almost doubled from $165 million to $314 million.
Namely, Hapag-Lloyd stood at $314 million in H1 2020, in comparison to $165 million seen in the corresponding period a year earlier.
In light of the situation, Rolf Habben Jansen, Chief Executive Officer of Hapag-Lloyd AG noted:
After the year got off to a decent start, transport volumes significantly declined in the second quarter as a result of the COVID-19 pandemic. We benefitted from the sudden drop in bunker prices, adjusted capacity to lower demand and took additional cost-cutting measures as part of our Performance Safeguarding Program. On the whole, we have a good first half year behind us despite the coronavirus crisis.
What is more, earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to USD 1.29 billion.
For the current financial year, Hapag-Lloyd expects an EBITDA of EUR 1.7 to 2.2 billion and an EBIT of EUR 0.5 to 1.0 billion.
Given the COVID-19 pandemic and the economic repercussions it has had in many parts of the world, the forecast will remain subject to considerable uncertainty. In addition to the development of transport volumes, the development of freight rates and a further potential increase in bunker prices, in particular, should have a significant impact on Hapag-Lloyd’s results in the second half of the 2020 financial year.
Thanks to the wide range of measures we have introduced in recent months, we are still on track. Our focus will remain on the safety and health of our employees, but naturally also on safeguarding the supply chains of our customers worldwide. We will continue to advance our Performance Safeguarding Program and to implement our Strategy 2023. While doing so, we will keep a close eye on the future course of the COVID-19 pandemic and flexibly react to market changes. On the whole, the pandemic is and will remain a major source of uncertainty for the entire logistics industry.
…as Jansen concluded.
