German container shipping heavyweight Hapag-Lloyd recorded an over 80 pct increase in earnings before interest and taxes (EBIT) for the 2019 financial year amid improved freight rates and cost management efforts.
The company’s EBIT stood at EUR 811 million (USD 876 million) against an EBIT of EUR 444 million secured in 2018.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to EUR 1,986 million from EUR 1,139 million posted a year earlier.
Hapag-Lloyd’s revenues for the year were up by 9 percent, reaching EUR 12.6 billion.
The company attributed the increase to an improved average freight rate of 1,072 USD/TEU for the year as a whole, which rose by 2.6 percent year-on-year (2018: 1,044 USD/TEU) as the company placed a stronger focus on more profitable trade lanes and active revenue management.
In addition, the company said that a 1.4 percent year-on-year increase in transport volumes, to more than 12 million TEU (2018: 11.9 million TEU), and a stronger US dollar exchange rate against the euro also made a positive contribution to revenues.
Lower expenses for the handling and inland transport of containers, as well as a slightly lower average bunker consumption price of USD 416 per tonne (2018: USD 421 per tonne), had a positive effect on transport expenses, which increased to a total of EUR 9.7 billion (2018: EUR 9.6 billion), also impacted by a stronger US dollar.