Hapag-Lloyd Operating Profits in Line with Expectations, Buoyed by Lower Bunker Expense

In its 2015 financial report, Hapag-Lloyd says average bunker consumption price fell from $575 per tonne in 2014 to $312 per tonne in 2015.

Hapag-Lloyd, in its latest preliminary financial report, says it has achieved its earnings targets for 2015 and significantly improved its operating result in Q4 compared to the prior year.

The German carrier said its average bunker consumption price fell to $312 per metric tonne (pmt) in 2015, a significant reduction on the $575 pmt in 2014.

During the 2015 full year period, the company managed to increase EBITDA operating earnings to €831.0 million ($916.18 million), compared to €98.9 million ($109.04 million) the previous year.

For the fourth quarter, the company says the EBITDA result reached €140.4 million ($154.78 million), compared to -€79.7 million (-$87.86 million) during the same period of 2014, while EBIT in 2015's Q4 was €17.8 million ($19.62 million), compared to -€304.9 million (-$336.12 million) in 2014.

Meanwhile the company's EBIT operating result reached €366.4 million ($403.96 million) during the year, compared to -€382.8 million (-$422.04 million) in 2015, and EBITDA margin grew to 9.4 percent, which is said to be "in line with the company's guidance."

Crediting the merger with Compañía Sudamericana de Vapores' (CSAV's) container business in December 2014, Hapag-LLoyd says revenue increased in 2015 to €8.8 billion ($9.7 billion), compared to €6.8 billion ($7.5 billion) in 2014.

Hapag-Lloyd says that final group accounts results for the full year of 2015, as well as the company's annual report, will be published on March 23, 2016.

In April, Ship & Bunker reported that Hapag-Lloyd CEO Habben Janssen asserted that box shippers operate in an environment in which it should be possible to turn a profit, saying "it always surprises me, that there are so many companies struggling with an industry that grows 3-4 percent every year."