DGAP-News: Hapag-Lloyd AG / Key word(s): Half Year Results
Hapag-Lloyd AG: Disappointing rate development affects results in first half
of 2016
10.08.2016 / 07:59
The issuer is solely responsible for the content of this announcement.
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Transport volume stable / Rates decline further / Transport expenses
significantly reduced thanks to synergies and efficiency programs / Focus
in second half on further cost savings, revenue recovery and preparations
for the merger with UASC
Subdued economic growth in many parts of the world, persistently tough
competition in the liner shipping industry and further declines in freight
rates have marked the first half of the 2016 business year. While transport
volume remained stable in the first six months at 3.7 million TEU (-0.4 %
compared to the prior year period), the average freight rate fell by USD
254 year on year to 1,042 USD/TEU, or almost 20 percent. Revenue reached
EUR 3.8 billion in the first half of the year (prior year period: EUR 4.7
billion). It was possible to reduce year on year transport expenses by
approximately EUR 600 million, or almost 16 percent. Aside from lower
bunker prices and consumption than in the previous year, this development
was also attributable to synergies realized as a result of the integration
of the container business of CSAV and ongoing cost savings and efficiency
programs. Bunker prices started to go up in the second quarter of 2016
while freight rates remained at a low level. This led to an additional
negative impact on earnings.
In the first half of the current business year, Hapag-Lloyd achieved an
EBITDA of EUR 196.7 million (prior year period: EUR 493.3 million) and an
operating result (EBIT) of EUR -39.7 million (prior year period: EUR 267.7
million). The Group net result stood at EUR -142.1 million (prior year
period EUR 157.2 million).
"The first-half result is disappointing," said Rolf Habben Jansen, CEO of
Hapag-Lloyd. "Our cost saving measures and efficiency programs are on track
and the synergies from the merger with CSAV are being realized on schedule.
But this isn't enough to completely compensate for the significant drop in
the average freight rate. Even though freight rates have finally gone back
up towards the peak season in various trades this rebound is coming later
than anticipated and more is needed going forward."
"In the second half of the year, our main focus will be to further improve
our cost base and to do whatever we can to get freight rates back to a more
sustainable level," Habben Jansen added. "In this difficult competitive
environment, it is very important to complete the transaction with UASC as
quickly as possible and to start the integration of UASC immediately after
the completion of all pre-closing conditions. The integration will bring us
annual net synergies of at least USD 400 million, some of which should
already take effect next year."
During the period under review, Hapag-Lloyd invested EUR 178.8 million in
vessels. With an equity ratio of 44.4 percent and liquidity reserves of EUR
774.9 million (both as of 30.6.2016), the company is well positioned
compared to its international competitors.
SUMMARY OF HAPAG-LLOYD KEY FIGURES
<pre>
H1 2016 H1 2015
Transport volume (TTEU) 3,703 3,719
Freight rate (USD/TEU) 1,042 1,296
Revenue (million EUR) 3,786 4,669
EBITDA (million EUR) 196.7 493.3
EBIT (million EUR) -39.7 267.7
EBITDA margin 5.2% 10.6%
EBIT margin -1.0% 5.7%
</pre>
About Hapag-Lloyd
With a fleet of 170 modern container ships and a total transport capacity
of 952,000 TEU, Hapag-Lloyd is one of the world's leading liner shipping
companies. The Company has around 9,300 employees at 365 sites in 120
countries. Hapag-Lloyd has a container capacity of 1.5 million TEU -
including one of the largest and most modern fleets of reefer containers. A
total of 128 liner services worldwide ensure fast, reliable connections
between all the continents. Hapag-Lloyd is one of the leading operators in
the Transatlantic, Latin America and Intra-America trades.
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10.08.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: Hapag-Lloyd AG
Ballindamm 25
20095 Hamburg
Germany
Phone: +49 (0) 40 3001 - 2896
Fax: +49 (0) 40 3001 - 72896
E-mail: ir@hlag.com
Internet: www.hapag-lloyd.com
ISIN: DE000HLAG475, USD33048AA36
WKN: HLAG47, A1E8QB
Indices: SDAX
Listed: Regulated Market in Frankfurt (Prime Standard), Hamburg;
Regulated Unofficial Market in Berlin, Dusseldorf,
Hanover, Munich, Stuttgart, Tradegate Exchange
End of News DGAP News Service
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491035 10.08.2016
DGAP-News: Hapag-Lloyd AG: Disappointing rate development affects results in first half of 2016
| Source: EQS Group AG