Hapag-Lloyd Reports Sharp Decline in Q2 Earnings and Revenue
By Adria Calatayud
Hapag-Lloyd, the German container-shipping company, announced on Thursday a significant decrease in earnings and revenue for the second quarter. This decline was attributed to a slump in ocean freight rates and weaker volumes caused by subdued demand.
Net Profit
Hapag-Lloyd reported a net profit of 1.00 billion euros ($1.10 billion) for the quarter, compared to 4.48 billion euros in the same period last year. Revenue more than halved from 8.99 billion euros to 4.42 billion euros.
Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA)
The company’s EBITDA fell to 1.28 billion euros from 5.28 billion euros.
Transport Volumes and Freight Rate
Hapag-Lloyd experienced a 3.4% decline in transport volumes for the first half of the year. Additionally, the average freight rate decreased by more than a third.
Outlook for 2023
Despite these challenges, Hapag-Lloyd maintained its expectations for 2023. This includes an EBITDA range of 4 billion euros to 6 billion euros and earnings before interest and taxes ranging from 2 billion euros to 4 billion euros.
