Anyone holding unhedged stocks of oil going into March this year may have lost significant amounts of money on them. File Image / Pixabay
Container line Hapag-Lloyd has lost €58.4 million ($63.2 million) as a result of the value of its bunker fuel inventory dropping in the wake of the recent oil-price collapse, the company said Friday.
"The rapid drop in oil prices, which began in March, resulted in an extraordinary charge of EUR 58.4 million due to the devaluation of bunker stocks as of the quarterly reporting date," the company said in an earnings release.
No mention was made in the earnings release of any hedging to limit losses from a decline in the oil price.
The company's bunker consumption in the first quarter was 1.1 million mt, little changed from the same period last year, and the average price paid gained $98/mt to $523/mt. 93% of its consumption was of 0.50% and 0.10% sulfur fuels, Hapag-Lloyd said, up from 15% in the first quarter of 2019.
The company saw an improvement in fuel efficiency, with bunker consumption per twenty-foot equivalent unit shipped slipping to 0.36 mt/TEU, from 0.38 mt/TEU a year earlier.