Hapag-Lloyd continues on profitable course in first half of 2015

In the first half of 2015, Hapag-Lloyd increased transport volumes and revenue as well as earnings. Volume growth was driven by the merger with Compania Sud Americana de Vapores (CSAV) that made Hapag-Lloyd the fourth largest carrier globally by capacity.

The transport volume increased to around 3.7 million TEU in the first six months of 2015, up 29.4% compared to the same period in 2014 and mainly due to the merger with CSAV. The average freight rate in the first half of 2015 came in at 1296 USD/TEU, 9% below the same period of 2014.

In the first half of 2015 revenue increased by EUR 1.5 billion to EUR 4.7 billion. Earnings increased as a result of initial synergies from the CSAV merger and additional cost savings from the OCTAVE program. In the first half of 2015, Hapag-Lloyd achieved an EBITDA of EUR 493.3 million (prior year period : EUR 67.2 million) and an operating result of EUR 267.7 million (prior year period : EUR - 101.5 million). Hapag-Lloyd recorded a profit of EUR 157.2 million (prior year period: EUR -173.3 million).

In the first six months of 2015 transport expenses in USD, which is the operational currency in shipping, went up significantly less than the transport volume - as Hapag-Lloyd realized initial synergies and cost savings from the OCTAVE program.

The transfer of CSAV's services and ship systems into the various trades of Hapag-Lloyd was completed in the second quarter of 2015, slightly ahead of the original plan. Now that the integration is almost completed, Hapag-Lloyd targets net annual synergies of around USD 400 million fully realised by 2017. This is USD 100 million higher than originally anticipated.

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