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Hapag-Lloyd's Q3 profit surges 150pc to US$8.8m, but more cost cuts ahead
GERMANY's Hamburg-based container shipping group Hapag-Lloyd has posted a net profit increase of more than 150 per cent to EUR8.2 million (US$8.8 million) in the three months ending September 30, up from EUR3.2 million a year earlier.
Profit before interest and tax (EBIT) came to EUR 65.6 million, down from EUR80.9 million previously, according to Reuters.
"The market has been very difficult so far this year, but in that environment, Hapag-Lloyd has performed relatively well, which underlines our competitiveness," said chief executive Rolf Habben Jansen.
"Our main focus for the upcoming quarters will be to further optimise our cost position," he added.
The industry has been in prolonged downturn since 2008 due to excess of ship capacity and slowing trade.
Hapag-Lloyd said it transported 5.65 million TEU in the first nine months of the year, up 1.3 per cent year on year, when the average freight rate fell by 17.7 per cent.
The company announced it was able to generate a positive operating result of EUR 25.9 million in the first nine months of 2016.
Hapag-Lloyd signed a binding agreement with Arab shipping company UASC in July to form the world's fifth largest shipping company by the end of 2016, which is expected to bring annual net synergies of $400 million, some of which should take effect from next year.
The enlarged company will also be the key player in a new shipping alliance, due to start in April next year.
Profit before interest and tax (EBIT) came to EUR 65.6 million, down from EUR80.9 million previously, according to Reuters.
"The market has been very difficult so far this year, but in that environment, Hapag-Lloyd has performed relatively well, which underlines our competitiveness," said chief executive Rolf Habben Jansen.
"Our main focus for the upcoming quarters will be to further optimise our cost position," he added.
The industry has been in prolonged downturn since 2008 due to excess of ship capacity and slowing trade.
Hapag-Lloyd said it transported 5.65 million TEU in the first nine months of the year, up 1.3 per cent year on year, when the average freight rate fell by 17.7 per cent.
The company announced it was able to generate a positive operating result of EUR 25.9 million in the first nine months of 2016.
Hapag-Lloyd signed a binding agreement with Arab shipping company UASC in July to form the world's fifth largest shipping company by the end of 2016, which is expected to bring annual net synergies of $400 million, some of which should take effect from next year.
The enlarged company will also be the key player in a new shipping alliance, due to start in April next year.
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