Second quarter positive for Hapag-Lloyd thanks to cost reductions

Despite the contraction in the volume of business recorded in the period, as well as other primaries companies including Japan's ONE, South Korea HM And the Taiwanese Evergreen and Yang Ming, Hapag-Lloyd is also managed to close the second quarter of 2020 with a economic results far from despised thanks to cost-cutting, a reduction that has benefited, among other things, along with the substantial reduction in other expenditures, a drop in fuel at a time when had more effect on the surcharges for the cost of fuel which had previously been introduced by drug companies to mitigate the consequences of taking effect at the beginning of the year of international standards that have imposed a sulphur content in fuels.

In the second quarter of this year, during which time Hapag-Lloyd's container ship fleet carried 2.7 million teu volumes, a decrease in the number of -11.1% on the April-June 2019 period, the company's revenues German navigation decreased by -5.0% as they stood at 3.02 billion euros compared to 3.17 billion in the second quarter of quarter of last year. The gap between volume declines transported and revenues are mainly attributable to the upside 4.8% of rentals, with an average rental instalment that in the second quarter quarter of 2020 was EQUAL to USD 1,114 for each 20-foot (teu) container transported.

In the second quarter of this year, the costs transport activities that have been totaled by Hapag-Lloyd was 2.08 billion euros, with a contraction of -16.0% mainly driven by a reduction in of the travel costs of the ships in the fleet, which amounted to 2.13 billion (-13.7%), linked to the decrease in activity impact of lockdowns, lower costs for the handling of loads, at 1.14 billion (-8.7%), a fall of -11.2% in the operating costs of the fleet and services, which amounted to 443.1 million, and a reduction in the cost of the bunker that was overall 268.6 million euros (-37.2%).

Hapag-Lloyd closed the second quarter of this year with EBITDA of 699.3 million euros, or 49.8%, an EBIT of 351.5 million euros million euros (up 100.1%) net profit of 260.6 million euro (421.2%).

Regarding the performance of the company's business germany in individual markets, the only revenues generated by services transatlantic seafarers operated by Hapag-Lloyd amounted to EUR 563.8 million (-9.1%), with an average rental per teu transported which was 1,405 dollars, or 3.2 percent and with a total volume 442mla teu (-13.8%). On the trans-Pacific routes, 418 thousand teu (-15.4%), with an average rental of 1,378 dollars/teu (6.9%) and with related revenues that totaled 523.7 million euros (-7.5%). The company's services Far East generated revenues of 441.3 million euros (-4.7%), with an average rental that was 982 dollars/teu (10.2%) and total transported volumes of 495 thousand teu (-15,2%). Services with Latin America generated revenues for EUR 705.3 million (-2.7%), with an average rental per teu transported which was 1,164 dollars, or 1.7%, and with a total 677 thousand teu (-6.5%). On routes with Europe/Mediterranean and Africa the company's ships have transported 161 thousand teu (-8.0%) and in this market have been recorded revenues of 152.8 million euros (-6.4%) with a rental average of 1,046 dollars/teu (-0.1%). Intra-Asian services Hapag-Lloyd generated revenues of 107.9 million euros (2.8%) with containerized volumes of 211,000 teu (-1,9%) and with an average rental of 563 dollars/teu (2.7%).

Commenting on these results, the CEO of Hapag-Lloyd, Rolf Habben Jansen, confirmed that the company "has left behind a good first half of the year despite the coronavirus crisis.' "After a good start to the year - he explained - in the second quarter, the volumes transported decreased significantly due to the Covid-19 pandemic. Us we have benefited from the sudden drop in bunker prices, of a capacity adjustment to lower demand and we have additional cost-cutting measures as part of the Our Performance Safeguarding Program."