DGAP-News: HAPAG - LLOYD AG performs strongly in a challenging year 201

DGAP-News: HAPAG - LLOYD AG / Key word(s): Final Results/Development
of Sales
HAPAG - LLOYD AG performs strongly in a challenging year 201

21.03.2012 / 13:27

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Hamburg, 21 March 2012
 

Consolidated financial statements for 2011 approved: 
Hapag-Lloyd performs strongly in a challenging year

Positive operating result despite heavy burden from severe energy cost
rises / Average bunker price 34% up on the year / Rate increases in current
year take effect

According to the consolidated financial statements approved today by the
Supervisory Board, Hapag-Lloyd increased its transport volume in 2011 by
5.1% to 5.198 million TEU. The average freight rate was USD 1,532/TEU,
which represents a modest decline of 2.4% on the year. Revenue came to 
EUR 6.103 billion, compared with EUR 6.204 billion in the previous year. 
The decline was largely due to exchange rate fluctuations. In US dollars, 
the main currency for Hapag-Lloyd's operational business, revenue rose by
around 3.2%.

Much higher energy costs severely depressed Hapag-Lloyd's earnings in the
2011 financial year. The average bunker price over the year was USD
605/tonne, which is more than USD 150/tonne higher than the year before, an
increase of 34%. The additional energy expenses of around USD 600 million
could not be passed on to customers, as some market players resorted to
aggressive pricing in 2011 in order to gain market share.

Despite these negative effects EBITDA for the financial year 2011 reached
EUR 367 million. The operating result (adjusted EBIT) came to EUR 101
million. Earnings after interest and taxes nearly broke even at EUR -29
million.

'In comparison with the competition this was an excellent result for
Hapag-Lloyd in a challenging year. Not only were we the only large liner
shipping company to achieve a positive operating result in all four
quarters of 2011, but we were also the only market participant to close the
second half-year with a group profit after interest and taxes,' said
Michael Behrendt, Chief Executive Officer of Hapag-Lloyd. Cash flow from
operating activities was EUR 244 million for the financial year under
review.

In the first few weeks of the current financial year Hapag-Lloyd has
performed in line with expectations. Further increases in bunker costs have
put a strain on what is anyway the weaker season at the start of the year.
High energy costs will remain a challenge for the entire industry
throughout 2012. This difficult environment made it imperative to announce
a sharp increase in freight rates beginning in March and April, which the
market has accepted.

'These increases are unavoidable in order to get back to adequate and
sustainable rates again, especially as the bunker price has gone up even
further,' said Michael Behrendt. 'This is also in the interest of our
customers, because in the long run it is the only way shipping companies
can offer a comprehensive, dependable service, which given the global
division of labour many customers rely on.' Furthermore, shareholders are
also entitled to a reasonable return on their capital, he added. 'The
ability to pay dividends is one of our most important corporate goals,'
said Michael Behrendt.

Hapag-Lloyd has a sound balance sheet. At year-end the Company held
liquidity reserves of around EUR 750 million. All budgeted capital
expenditure is fully funded, in particular the ten newbuilds that are due
for delivery from July 2012 until the end of 2013. The 2011 Annual Report
was published today and is available from www.hapag-lloyd.com


End of Corporate News

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21.03.2012 Dissemination of a Corporate News, transmitted by DGAP - a
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