German container shipping giant Hapag-Lloyd has marked over the 10-fold surge in nine-month net profit on Friday, citing record freight rates amidst scarce capacity in conveyance and advancing transport volumes. The company said net profit climbed to 5.6 billion euros ($6.41 billion) in the January-September period, from 538 million euros a year earlier.
It is expecting the momentum in earnings to remain at a high level for the rest of the year while operators and customers across the globe will face more severe infrastructure bottlenecks owing to the COVID-19 Pandemic which has resulted in disruption in the supply chains.
Global supply chains are under massive pressure from delays on account of logjams at ports.
Rolf Habben Jansen, the CEO, told Reuters he expected some easing of the situation around the Chinese New Year festivities around Feb. 1 and up to the end of the second quarter.
“But with the pandemic not behind us, 2022 will not be a normal year,” he added.
The company held on to its recently corrected full-year guidance for earnings before interest, taxes, depreciation and amortisation (EBITDA) between 10.1 billion and 10.9 billion euros and earnings before interest and taxes (EBIT) between 8.7 billion and 9.5 billion euros. Revenues in the first nine months advanced by 60% to 15 billion euros, owing to a 66% rise in average freight rates to $1,818 per 20-foot equivalent standard container units (TEU).
You Might Also Like: Shipping Lines Expected To Make Record $200 Billion Profit This Year
Transport costs for the period of January to September shot up 16% to 7.4 billion euros, with shipping fuel up 12.4% at $452 a tonne.
EBITDA was 6.8 billion euros, up from 1.8 billion euros in the same period last year, while EBIT surged to 5.8 billion euros from 858 million euros.
The company reported in August that it expected to pay a healthy dividend for this year. It will hold a capital markets day for investors on 17th November and report its final earnings for this year on 16th March, 2022.