Ranking fifth: Net profit fell 94.4%, facing challenges

In the first three quarters of 2023, Hapag-Lloyd shipped 8.916 million TEU, a decrease of 71,000 TEU or 0.8%. Average freight per box of $1,604, a decrease of $1,334 or 45.4%; Operating income of $15.312 billion, a decrease of 46.2%; Earnings before interest, tax, depreciation and amortization (EBITDA) was $4.519 billion, a decrease of 72.9%. Earnings before interest and tax (EBIT) reached $2.989 billion, down 80.3% year on year; Net profit fell 76.6 percent to $3.425 billion. In the first three quarters of 2023, EBITDA margin reached 30% and EBIT margin reached 20%.

In the third quarter of 2023, Hapag-Lloyd shipped 3.110 million TEU, an increase of 4.5%. The average freight per box was US $1,312, down 57.8% year on year; Operating income of $4.465 billion, a decrease of 54.8%; EBITDA of $744 million decreased 87.0% year-over-year; EBIT was $228 million, a decrease of 95.6%. Net profit reached $293m, down 94.4 per cent from a year earlier. In the third quarter of 2023, EBITDA margin reached 17% and EBIT margin reached 5%.

Hapag-lloyd said these results were significantly below the previous year's levels due to serious changes in market conditions. With the further expansion of its terminal business, Hapag-Lloyd Group's activities are also divided for the first time into the liner transport and Terminal & Infrastructure segments.

However, freight rates were significantly lower than prior year levels and, as expected, fell again in the third quarter, which was reflected in a significant decline in revenue. In response, Hapag-Lloyd is working to further reduce costs. Nevertheless, if spot rates do not recover, Hapag-Lloyd could face some challenging quarters in this subdued market environment."

Hapag-lloyd lowered its guidance, and earnings trends for fiscal 2023 will gradually normalize. EBITDA is expected to be between $4.5 billion and $5.5 billion (€4.1 billion to €5 billion) and EBIT is expected to be between $2.4 billion and $3.4 billion (€2.2 billion to €3.1 billion). However, there is uncertainty in this forecast given the many geopolitical conflicts, ongoing inflationary pressures, and continued high inventory levels among many customers.

According to the latest Alphaliner data, Hapag-Lloyd ranks fifth in the world's top 100 liner companies by capacity, operating 266 vessels with a total capacity of 1,965,800 TEU, of which 122 are owned and 144 are chartered. At the same time, Hapag-Lloyd has 12 new shipbuilding orders for approximately 252,000 TEU.