Hapag back in black, on a `secure heading` once again

GERMANY`s once-troubled Hapag Lloyd third quarter pre-tax profit increased by EUR448.1 million (US$608.8 million) to EUR263.6 million - up from a EUR184.5 million loss suffered in the third quarter last year.

The Albert Ballin Holding Group, whose sole purpose is to own and operate the Hanover-based container shipping line, achieved an EBIT of EUR506 million in the first three quarters of 2010.


Albert Ballin Holding posted a 68.5 per cent third quarter year-on-year revenue increase to EUR1.78 billion. In the first nine months, the group generated revenues of EUR4.66 billion.


"Hapag-Lloyd is back on secure heading in the current 2010 financial year," reports the group statement, after it acquired all of the company from Germany travel giant TUI, which recently held 43 per cent after giving up a controlling interest. "From now on, Hapag-Lloyd will present regular quarterly and annual financial reports for its 100 per cent shareholder.


"Today, Hapag-Lloyd AG is publishing for the first time an interim group report for Albert Ballin Holding GmbH & Co. KG for the third quarter and the first nine months of the 2010 financial year," the statement said.


The group stated that in the first three quarters of 2010 the global economy and world trade recovered more quickly than expected. "The driving economic forces behind this development were China and a number of emerging markets. Hapag-Lloyd also benefited from the recovery in container shipping that occurred as a direct result," the statement said.


"After sustaining heavy losses last year, the first nine months of this year have seen the best result in the history of our company. This development stems from freight rates well above last year`s, greater transport volumes and significant cost savings," said Hapag-Lloyd chairman Michael Behrendt.


For the first three quarters of 2010, Hapag-Lloyd moved 3.7 million TEU, an increase of 235,000 TEU on the first three quarters of last year. In the first nine months of 2010, the average freight rate went up to US$1,547 per TEU, which was $326 higher per TEU, or up 26.7 per cent year on year.


Compared with December 2009, cash and cash equivalents have more than doubled as of September 30 this year, rising by EUR440.3 million to EUR853.6 million.


"The main reason for the increase was cash flow of EUR454.4 million from operating activities," said the company statement.


Net debt (financial liabilities less cash and cash equivalents) fell 41.2 per cent to EUR746.4 million as of September 30, compared with EUR1.26 billion as at December 31, 2009. In addition, Hapag-Lloyd repaid a bridging loan from TUI for EUR226.2 million on November 2.