Hapag-Lloyd has recorded a significant year-on-year improvement in its operating results for the first half of 2019.
The group net result increased from -€101m (US$113.4m) to €146m (US$164m) in 2018 while earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to €956m (US$1bn) from €427m (US$479.5m).
Included within the €529m (US$594m) EBITDA increase was the positive effect of €217m (US$244m) caused by the new reporting standards IFRS 16.
Rolf Habben Jansen, chief executive officer of Hapag-Lloyd, said: “Thanks to higher transport volumes in our core trades, good cost control and slightly better freight rates, we can look back on a good first half of the year.
“This also allowed us to redeem additional debt through the early repayment of a senior note.”
Revenues increased to €6.2bn (US$6.9bn) from €5.4bn (US$6bn) while transport volumes rose 2% to 5.9m teu and the average freight rate climbed by 5% to US$1,071 per teu.
However higher bunker prices of US$429 per tonne, up from US$385 per tonne, had a negative impact on the result.
Jansen added: 2After a solid first half of 2019, our outlook remains unchanged even if we have to deal with more trade restrictions and see increasing geopolitical risk, which of course could impact growth.
“In the second half of the year, we will continue implementing our Strategy 2023 in our efforts to become the number one for quality.”
Strategy 2023 aims to implement cost initiatives with a focus on network optimisation, terminal partnering and further improvements in procurement and container steering.