Hapag-Lloyd third consecutive profitable quarter

In the third quarter of 2015, Hapag-Lloyd recorded higher transport volumes, revenue and significantly improved earnings. Hapag-Lloyd achieved a net profit for the third consecutive quarter.

In the first nine months Hapag-Lloyd's revenue increased by EUR 1.9 billion to EUR 6.8 billion compared to the same period in 2014. This increase was highly impacted by the merger with the container shipping activities (CCS) of CSAV in December 2014. Transport volume rose 28.3% to around 5.6 million TEU in the first nine months of 2015.

On a pro forma basis including the CCS activities for 2014 volumes were down 3.9% in that period. The average freight rate in the first nine months of 2015 came in at 1,260 USD/TEU, 12% below the same period of 2014. On a pro forma basis including the CCS activities for 2014 the decline would have been 8.0%.

Earnings improved as a result of synergies from the merger with CCS and additional cost savings from the OCTAVE program. In the first nine months of 2015, Hapag-Lloyd achieved an EBITDA of EUR 690.6 million (prior year period: EUR 178.6 million) and an operating result (EBIT) of EUR 348.6 million (prior year period: EUR -77.9 million). Hapag-Lloyd recorded a net profit of EUR 160.4 million (prior year period: EUR -224.0 million).

Transport expenses per TEU decreased by USD 240/TEU to USD 1,111/TEU in the first nine months of 2015. The decline was mainly due to reduced bunker prices and a decline in bunker consumption as well as synergies related to the integration of CCS. Costs of purchased services also declined by USD 92/TEU on the basis of lower container transport costs as well as port, canal and terminal costs as a consequence of the realized synergies and cost savings.

On November 6, 2015, Hapag-Lloyd successfully completed its initial public offering, generating gross proceeds of approximately USD 300 million that will be invested in new vessels and containers.

"We are satisfied with our results for the first nine months of 2015, given the very challenging market environment", said Rolf Habben Jansen, CEO of Hapag-Lloyd. "The third quarter proved once more that the merger with CSAV was the right step and that our cost reduction measures are making us competitive. With the proceeds from the IPO, we will be able to invest in the future to further improve efficiency and profitability."

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