Germany's Hapag-Lloyd posted a year-on-year first quarter net loss of EUR119.1 million (US$163.2 million), drawn revenues of EUR1.55 billion, down 6.5 per cent, which also took into account one-off costs of the CSAV takeover,
The company achieved a pretax profit (EBITDA) of EUR2.9 million, a 727 per cent decline year on year, and widened its operating loss of EUR63.2 million by 18 per cent, according to Shipping Gazette.
Hapag-Lloyd increased its throughput 5.5 per cent year on year to 1.4 million TEU in the first quarter, but at US$1,422 per TEU, down $124 per TEU year on year, there was no financial gain.
But the company cut costs EUR86 million to EUR 1.404 billion overall. Costs of purchased services were cut EUR53 million, mostly in the area of container transport, rental charges for charters, leases and containers.
Bunker expenses also declined due to the use of more modern and efficient vessels and to lower fuel prices, which fell 5.3 per cent to $595 per tonne in the first quarter.
"However, this still represents a very high overall level that cannot be compensated for in any way by current freight rates, which are far too low," said the company statement.
"Our success in achieving targets will depend largely on the development of freight rates in the second half of the year and, above all, in the peak season," said Hapag-Lloyd CEO Michael Behrendt.
"With the expansion of the G6 Alliance to include all east-west trades, being implemented in our network, together with the takeover CSAV's container segment, Hapag-Lloyd will improve its ability to compete," he said.
"With an equity ratio of 40 per cent, Hapag-Lloyd has a sound balance sheet, said the company. With liquidity reserves of EUR535 million, including unused credit lines, the company is securely financed for the future," said the statement.
The company achieved a pretax profit (EBITDA) of EUR2.9 million, a 727 per cent decline year on year, and widened its operating loss of EUR63.2 million by 18 per cent, according to Shipping Gazette.
Hapag-Lloyd increased its throughput 5.5 per cent year on year to 1.4 million TEU in the first quarter, but at US$1,422 per TEU, down $124 per TEU year on year, there was no financial gain.
But the company cut costs EUR86 million to EUR 1.404 billion overall. Costs of purchased services were cut EUR53 million, mostly in the area of container transport, rental charges for charters, leases and containers.
Bunker expenses also declined due to the use of more modern and efficient vessels and to lower fuel prices, which fell 5.3 per cent to $595 per tonne in the first quarter.
"However, this still represents a very high overall level that cannot be compensated for in any way by current freight rates, which are far too low," said the company statement.
"Our success in achieving targets will depend largely on the development of freight rates in the second half of the year and, above all, in the peak season," said Hapag-Lloyd CEO Michael Behrendt.
"With the expansion of the G6 Alliance to include all east-west trades, being implemented in our network, together with the takeover CSAV's container segment, Hapag-Lloyd will improve its ability to compete," he said.
"With an equity ratio of 40 per cent, Hapag-Lloyd has a sound balance sheet, said the company. With liquidity reserves of EUR535 million, including unused credit lines, the company is securely financed for the future," said the statement.