Hapag-Lloyd Achieves Significantly Higher Operating Result Post UASC Merger

Hapag-Lloyd achieved a significantly higher operating result (EBIT) for the full year 2017. Based on the preliminary unaudited figures, earnings before interest, taxes, depreciation and amortisation (EBITDA) climbed up to EUR 1,055 million (2016: EUR 607 million) and the operating result before interest and taxes (EBIT) increased significantly to EUR 411 million (2016: EUR 126 million) in 2017. The EBITDA margin grew to 10.6% compared to 7.9% in 2016. Besides a positive development of the worldwide container transport volume and a slight recovery of freight rates, this development was mainly driven by the merger with the United Arab Shipping Company Ltd. (UASC). In the 4th Quarter, 2017 EBITDA increased to EUR 333 million (Q4 2016: EUR 226 million) and EBIT to EUR 143 million (Q4 2016: EUR 101 million).

Revenues increased to EUR 10.0 billion (2016: EUR 7.7 billion), also supported by an improved average freight rate in 2017 of 1,051 USD/TEU (2016: 1,036 USD/TEU). At the same time, Hapag-Lloyd increased the transport volume significantly by 29.0% to 9.8 million TEU (2016: 7.6 million TEU) whilst transport expenses increased by 25.5% to EUR 8.0 billion (2016: EUR 6.4 billion), mainly driven by the increase in transport volumes and a higher average bunker consumption price of USD 318/tonne (2016: USD 226/tonne). The average exchange rate was at 1.13 USD/EUR compared to 1.10 USD/EUR in 2016.

Representation Image – Credits: hapag-lloyd.com

As of 31 December 2017, Hapag-Lloyd had EUR 6.1 billion (2016: EUR 5.1 billion) in equity and a liquidity reserve (cash, cash equivalents and unused credit facilities) of EUR 1.1 billion (2016: EUR 0.8 billion). The equity development was also driven by the merger with UASC as well as a capital increase of EUR 352 million that was successfully completed in October 2017. Net debt amounted to EUR 5.7 billion (2016: EUR 3.6 billion).

All results are preliminary. The final full year 2017 group financial statements and the annual report 2017 will be published on 28 March 2018.

Image Credits: hapag-lloyd.com

UASC Ltd. and its subsidiaries have been incorporated into the consolidated financial statements of Hapag-Lloyd since 24 May 2017, the date of transfer of control. As a result, the presented figures include the effects of the transaction from this time on and can therefore only be compared with prior-year figures to a limited extent.

About Hapag-Lloyd

With a fleet of 215 modern container ships and a total transport capacity of 1.6 million TEU, Hapag-Lloyd is one of the world’s leading liner shipping companies. The Company has around 12,000 employees and over 420 offices in 126 countries. Hapag-Lloyd has a container capacity of 2.3 million TEU – including one of the largest and most modern fleets of reefer containers. A total of 125 liner services worldwide ensure fast and reliable connections between more than 600 ports on all the continents. Hapag-Lloyd is one of the leading operators in the Transatlantic, Middle East, Latin America and Intra-America trades.

Press Release: hapag-lloyd.com