German ocean carrier Hapag-Lloyd posted earnings growth in the first half of 2022 as higher freight rates offset flat volumes, leading the liner to raise its full year outlook by as much as 30%.
Hapag-Lloyd is the world’s fifth largest containership operator with 1.7 million TEU capacity and 6.9% market share, according to Alphaliner.
Based on preliminary figures, EBITDA for the first half year of 2022 came in in the range of $10.9 billion and EBIT is around $9.9 billion, the company reported today.
Transport volumes in the first six months of the year hit 6 million TEU, about same the level of the previous year. At the same time, the average freight rate increased by approximately 80%, Hapag-Lloyd said.
Based on the first half performance, Hapag-Lloyd said the second half of the year should exceed earlier expections.
For full year 2022, the company now expects EBITDA to be in the range of $19.5 to $21.5 billion, up from $14.5 to $16.5 billion previously, and EBIT in the range of $17.5 to $19.5 billion, up from $12.5 to $14.5 billion.
For comparison, Hapag-Lloyd posted “extraordinarily strong” operating results in 2021, with EBITDA of $12.8 billion, up from $9.6 billion in 2020, and EBIT of $11.1 billion.
However, in its latest update, the company did note that there is “considerable uncertainty” in its forecast given recent events.
“In view of the war in Ukraine, the continuing disruptions to global supply chains and the effects of the COVID-19 pandemic, the forecast is subject to considerable uncertainty,” Hapag-Lloyd said.
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