Hapag-Lloyd has upgraded its forecast for the 2020 financial year due to the container shipping market performing much better than expected in Q3.
On the basis of preliminary figures, Hapag-Lloyd’s earnings before interest and taxes (EBIT) for the third quarter 2020 significantly increased to around EUR 350 million (2019: EUR 253 million). Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to around EUR 650 million (2019: EUR 554 million). Volumes were 3 percent under previous year, but much better than expected some months ago.
The main drivers of the positive business developments have been significantly higher demand and respectively higher transport volumes, and rigorous cost and revenue management predominately driven by the company’s performance safeguarding program (PSP), which has been set up in the first quarter of 2020.
Due to the positive development in Q3, Hapag-Lloyd expects an EBIT of EUR 1.1 to 1.3 billion and an EBITDA of EUR 2.4 to 2.6 billion.
Rolf Habben Jansen, chief executive officer, Hapag-Lloyd, commented: “We have experienced a strong third quarter with a high demand, especially for exports out of Asia. Thanks to the positive market development and the wide range of measures we have introduced in recent months, we expect a financial year with results well above our previous forecast.
“Nevertheless the pandemic will remain to be a huge challenge and a major source of uncertainty for the entire logistics industry. Our focus within the next months will stay on the safety and health of our employees, but also on safeguarding the supply chains of our customers.”