Hapg-Lloth (Hapag-Lloyd) Releases First Quarter 2023 Unaudited Financial Results.
In the first quarter of 2023, Hapg-Lloth's container volume reached 2.842 million TEU, a year-on-year decrease of 145000 TEU or 4.9; The average freight per case was 1999 US dollars, down 775 US dollars or 27.9 year on year. Realized operating income of 5.619 billion euros (6.028 billion US dollars), down 32.7 year on year. Earnings before interest, tax, depreciation and amortisation (EBITDA) was 2.217 billion euros (2.379 billion US dollars), down 55.2; earnings before interest and tax (EBIT) reached 1.747 billion euros ($1.874 billion), down 60.9 percent year-on-year; net profit reached 1.893 billion euros ($2.031 billion), down 56.6 percent year-on-year. In the first quarter of 2023, EBITDA margin reached 39% and EBIT margin reached 31%.
Hapg-Lloyd said that due to retailer destocking and weak overall global demand, carrier volume fell 4.9 percent year-on-year. In addition, average single-box freight fell 27.9 percent year-on-year, which was the main reason for the decline in revenue. Transportation costs remained at the same level as the same period last year, that is, US $3.3 billion. The decline in container volume was accompanied by the increase in related costs caused by inflation and the increase in fuel prices. The average fuel cost in the first quarter of this year was US $645/ton, compared with the same period last year. It was 613 US dollars/ton.
Hapg-Lloyd shows more resilience than peers
In terms of container volume, in the first quarter of 2023, Hapg-Lloyd was down 4.9 per cent year-on-year, while Maersk was down 9.4 per cent, Ocean Network Shipping (ONE) was down 8.5 per cent year-on-year, and Orient Overseas was down 3.2 per cent year-on-year.
In terms of operating income, in the first quarter of 2023, Hapg-Lloyd's revenue fell 32.7 per cent year-on-year, Maersk fell 26.4 per cent year-on-year, ONE fell 44.3 per cent year-on-year and Orient Overseas fell 57.8 per cent year-on-year.
As far as single-box average freight is concerned, in the first quarter, Hapg-Lloyd's single-box average freight was 1999 US dollars, Maersk and ONE single-box average freight were 1436 US dollars and 17882 US dollars.
In terms of net profit, in the first quarter of 2023, Hapg-Lloyd's net profit fell 56.6 per cent year-on-year, while Maersk fell 65.9 per cent and ONE fell 76.3 per cent year-on-year.
2023 performance expectations, also showing greater resilience, normalizing to slightly better than 2020 levels
Hapg-Lloyd maintains its earnings forecast released on March 2, and the profit trend in fiscal year 2023 will gradually normalize. EBITDA is expected to be between $43 and $6.5 billion (€ 40 and € 6 billion) and EBIT is expected to be between $21 and $4.3 billion (€ 20 and € 4 billion). However, given the ongoing conflict between Russia and Ukraine, other geopolitical uncertainties and ongoing inflationary pressures, the forecast may be negatively affected.
Rolf Habben Jansen, chief executive of Hapg-Lloyd, said, "Despite the decline in performance, Hapg-Lloyd has made a solid start to the financial year. Market conditions have normalized and demand and freight rates have declined accordingly. This will undoubtedly have an impact on our earnings throughout the year, so Hapg-Lloyds will be keeping a close eye on costs. In addition, Hapg-Lloth is developing a strategy for further development. "
According to the latest Alphaliner data, Hapg-Lloth ranks 5th among the top 100 global liner companies in terms of capacity, operating 248 ships with a total capacity of 1.8 million TEU, of which 120 are owned and 128 are chartered. Meanwhile, Hapg-Lloth holds orders for 17 newbuilding ships, about 34.9TEU.
Source: Shipping Industry