German terminal operator Hamburger Hafen und Logistik AG (HHLA) made a successful start to the 2019 financial year despite a challenging market environment.
The group’s revenue increased by 10.3% to EUR 347.6 million (USD 389 million) in the first quarter this year from EUR 315.2 million seen in the same period a year earlier.
The operating result (EBIT) was far above the level of last year, increasing by EUR 11.8 million or 24.5 % to EUR 59.7 million in Q1 2019.
HHLA’s port logistics subgroup saw a 10.6% rise in revenue in the first three months, which amounted to EUR 339.8 million. The operating result was EUR 55.7 million, up by 26.1%, according to the terminal operator.
Container throughput grew slightly by 2.2% to 1,865 thousand TEU, partly due to the integration of the Estonian terminal operator HHLA TK Estonia last year.
Revenue for the segment increased by 4.8% year-on-year in the first three months to EUR 200.9 million, while the operating result rose by 15.6% year-on-year to EUR 37.8 million.
“The results attained in the first quarter provide a firm basis for us to reach our guidance for the year. We are therefore intensifying our efforts to systematically implement our strategy, which is focussed on strengthening our creative power and future viability,” Angela Titzrath, Chairwoman of HHLA’s Executive Board, commented.
Outlook
Due to the takeover of North America services and the first full-year consolidation of throughput volumes of the HHLA TK Estonia container terminal, HHLA expects a slight overall increase in container throughput in 2019. Slight year-on-year growth is also expected for container transport.
At a group level, this should lead to a slight increase in revenue.
The operating result port logistics subgroup is expected to rise significantly year-on-year in 2019. Earnings for the subgroup will be shaped largely by the container and intermodal segments, as explained by the terminal operator.