Hapag-Lloyd Q3 profit down 618pc, sales off 15pc - soaring bunker blamed

HAMBURG`s Hapag-Lloyd, the world`s fifth biggest container carrier, has posted a 618pc plunge in third quarter pre-profit to EUR36.7 million (US$49.3 million), drawn on revenues of EUR1.54 billion, a decline 15 per cent year on year.

"Our operating result is satisfactory and a clear sign of our strength. We performed very well in a demanding market environment. Hapag-Lloyd`s operating result is well above the industry average," said company chairman Michael Behrendt.


Third quarter revenue came to EUR1.54 billion against EUR1.78 billion last year. Revenue for the first nine months was down 3.7 per cent to EUR4.50 billion on last year`s EUR4.67 billion. Lower revenues were blamed on severe exchange rate fluctuations arising from the Euro debt crisis.


Third quarter net profit was EUR9.6 million.


Hapag-Lloyd`s average freight rate in the first nine months of 2011 was US$1,540 per TEU in line with last year`s figure of US$1,547 per TEU and volumes rose 3.9 per cent to 3.874 million TEU.


But expenses increased by more than EUR333 million compared to last year due primarily to the steep rise in bunker prices. "This was significant in preventing higher earnings," said the company statement.


Yet the third quarter was the best year to date, said the company. "The positive result was also achieved by consistently pursuing and optimising the cost savings programme that Hapag-Lloyd initiated in 2009," said the company statement.