A significantly lower average freight rate drove Hapag-Lloyd’s revenues down 12.5 percent year-over-year in 2016 to 7.7 billion euros.
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Hapag-Lloyd reported its preliminary unaudited figures for 2016 on Tuesday, and the final full-year group financial statements and annual report will be published March 24.
German ocean carrier Hapag-Lloyd posted earnings before interest, taxes, debt and amortization (EBITDA) of 607 million euros (U.S. $671 million) for 2016, a 27 percent decline from 2015, according to preliminary unaudited figures released by the company.
EBIT for the year tumbled 65.6 percent from 2015 to 126 million euros.
Hapag-Lloyd’s revenues for 2016, which were driven down by a significantly lower average freight rate, fell 12.5 percent year-over-year to 7.7 billion euros.
Meanwhile, Hapag-Lloyd’s transport volumes for 2016 ticked up 2.7 percent from 2015 to 7.6 million TEUs. The company’s transport costs fell 12.3 percent from 2015 to 6.4 billion euros, mainly driven by a lower average bunker consumption price, as well as synergies from the integration of Chilean ocean carrier CSAV’s container shipping business and cost saving programs, including improved fuel efficiency, Hapag-Lloyd said.
Although Hapag-Lloyd’s earnings and revenues for 2016 took a hit, results started to look up for the carrier in the fourth quarter of the year. Hapag-Lloyd recorded an EBITDA of 226 million euros for the quarter, a sharp increase from 140.4 million euros for the fourth quarter of 2015, and an EBIT of 100 million euros, rising from 17.8 million euros from the fourth quarter of 2015.
“All results are preliminary,” Hapag-Lloyd said. “The final full year 2016 group financial statements and the annual report 2016 will be published on March 24, 2017.”
Hapag-Lloyd will be a member of “THE Alliance,” which is scheduled to take effect in April. Other members will include Yang Ming of Taiwan; and “K” Line, NYK Line and MOL of Japan.
Hapag-Lloyd’s owners include CSAV (31.4 percent), the City of Hamburg (20.6 percent), Kühne Maritime (20.2 percent), TUI (12.3 percent) and a free float of 15.5 percent.