For the first quarter of 2020, Hapag-Lloyd recorded earnings before interest and taxes (EBIT) of $176 million (EUR 160 million), which is below the corresponding prior-year figure of $243 million (EUR 214 million). The Group net result declined to approximately $27 million (EUR 25 million). Earnings before interest, taxes, depreciation and amortisation (EBITDA) decreased slightly to $517 million (EUR 469 million).
“Despite the Coronavirus pandemic, we have gotten the year off to a good start. Higher transport volumes and better freight rates have boosted our revenues. The financial result is below the first quarter of the previous year as we faced higher bunker prices after the new IMO 2020 rules on 1 January and we had a significant negative bunker stock valuation after the decline in crude oil prices at the end of the first quarter,” said Mr Rolf Habben Jansen, Chief Executive Officer of Hapag-Lloyd AG.
Revenues increased in the first quarter of 2020 by around 6 per cent, to $3.7 billion (EUR 3.3 billion). This can primarily be attributed to a 4.3 per cent increase in transport volumes, to more than 3 million TEUs, and an improved average freight rate of $ 1,094 per TEU.
Added Mr Jansen: “Although we were able to pick up a bit of tailwind at the beginning of the year, we anticipate that the Coronavirus pandemic will have very significant impacts in 2020, beginning in the second quarter. Our main focuses will continue to be the safety and well-being of our employees as well as the supply chains of our customers. We have taken a wide range of measures designed to save an amount in the mid-triple-digit million range to safeguard our profitability and liquidity. We adjust our service network to the lower demand and seek savings in all cost categories, from terminal, transport, equipment and network costs to overhead.”
