FRANKFURT German container shipping line Hapag-Lloyd nearly doubled net profit in the first half of 2020 and kept its full-year outlook intact but warned that the coronavirus crisis bears indiscernible risks for its operations.
Net group profit in the January-June period was up 95% from a year earlier at 285 million euros ($336.78 million) versus 146 million euros in the same period a year earlier, Hapag-Lloyd, the world’s number five in the industry, said on Friday.
Chief Executive Rolf Habben Jansen cited lower transport and shipping fuel costs in the second quarter and capacity discipline, which overrode the effects of a decline in transport volumes as economies worldwide contracted amid lockdowns.
“We benefitted from the sudden drop in bunker prices, adjusted capacity to lower demand and took additional cost-cutting measures as part of our Performance Safeguarding Program,” he said.
Earnings before interest, tax, depreciation and amortisation (EBITDA) in the full year should be between 1.7-2.2 billion euros and earnings before interest and tax (EBIT) between 0.5-1.0 billion, he reiterated.
First-half EBIT was at 511 million euros, surpassing 389 million a year earlier while EBITDA came in at 1.17 billion euros, up from 956 million euros in the comparable 2019 period.
Analysts think container shipping companies could benefit from the resumption of more Chinese business activities and a tentative recovery.
But Hapag-Lloyd said its earnings forecast for the full year remained subject to considerable uncertainty.
“We will keep a close eye on the future course of the COVID-19 pandemic and flexibly react to market changes,” said Habben Jansen.
($1 = 0.8462 euros)
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