Hapag-Lloyd raises earnings forecast amid
Amid better than expected business performance, German container shipping company Hapag-Lloyd has raised its earnings forecast.
Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 2,6 to 2,7 billion for the 2020 financial year, compared to the previously reported EUR 2,4 to 2,6 billion. Earnings before interest and taxes (EBIT) rose to EUR 1.25 to 1.35 billion from EUR 1.1 to 1.3 billion.
Hapag-Lloyd indicated that the current EBIT range contains impairments of around EUR 100 million related to the expected optimization of the portfolio of vessels. In the previous earnings outlook, the measures were not factored in.
In the fourth quarter, as well, market demand for container capacities has continued to be surprisingly strong and today we are deploying every available ship. Additionally, we are on track with the cost savings from our Performance Safeguarding Program. Given these circumstances, the results of the current financial year will exceed our previous forecasts. In light of the global pandemic, we will continue to keep a close eye on the safety and well-being of our employees as well as on our customers’ supply chains – but the continued implementation of our Strategy 2023 will also remain an integral part of our agenda," stated Rolf Habben Jansen, Chief Executive Officer of Hapag-Lloyd.
The company has a fleet of 234 modern container ships and a total transport capacity of 1.7 million TEU.
Moody's updated the outlook for the container shipping sector from negative to positive in the light of improving business fundamentals and capacity management discipline.
In 2021, in the midst of balanced supply and demand combined with disciplined capacity management by carriers, low bunker prices and growing freight rates, the container shipping market is expected to sail in a stable operating environment.
Maritime Business World