On the basis of preliminary figures, Hapag-Lloyd’s earnings before interest and taxes (EBIT) for the 2019 financial year significantly increased to EUR 811 million (2018: EUR 444 million).
Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to EUR 1,986 million (2018: EUR 1,139 million). The main drivers of positive business developments have been improved freight rates as well as rigorous cost and revenue management.
The 2019 results include effects from the first-time application of the IFRS 16 accounting standard, which amount to approximately EUR 31 million for the EBIT and approximately EUR 467 million for the EBITDA.
In the fourth quarter of 2019, both the EBITDA of EUR 475 million (Q4 2018: EUR 327 million) and the EBIT of EUR 169 million (Q4 2018: EUR 144 million) were also above their prior-year levels.
Revenues increased in the 2019 financial year by approximately 9 percent, to EUR 12.6 billion (2018: EUR 11.6 billion). This can be attributed to an improved average freight rate of 1,072 USD/TEU for the year as a whole, which rose by 2.6 percent year-on-year (2018: 1,044 USD/TEU) due to a stronger focus on more profitable trade lanes and active revenue management. In addition, a 1.4 percent year-on-year increase in transport volumes, to more than 12 million TEU (2018: 11.9 million TEU), and a stronger US dollar exchange rate against the euro also made a positive contribution to revenues.
Lower expenses for the handling and inland transport of containers, as well as a slightly lower average bunker consumption price of USD 416 per tonne (2018: USD 421 per tonne), had a positive effect on transport expenses, which increased to a total of EUR 9.7 billion (2018: EUR 9.6 billion), also impacted by a stronger US dollar.
Hapag-Lloyd will publish its 2019 Annual Report and an outlook for the current financial year on 20 March 2020.