Hapag-Lloyd achieved a significantly higher operating result (EBIT) for the full year 2017. Based on the preliminary unaudited figures, earnings before interest, taxes, depreciation and amortisation (EBITDA) climbed up to EUR 1,055 million (USD 1288.14 million) (2016: EUR 607 million (USD 741.14 million)) and the operating result before interest and taxes (EBIT) increased significantly to EUR 411 million (USD 501.83 million) (2016: EUR 126 million (USD 153.84 million)) in 2017.
The EBITDA margin grew to 10.6% compared to 7.9% in 2016. Besides a positive development of the worldwide container transport volume and a slight recovery of freight rates, this development was mainly driven by the merger with the United Arab Shipping Company Ltd. (UASC). In the 4th Quarter 2017 EBITDA increased to EUR 333 million (USD 406.59 million) (Q4 2016: EUR 226 million (USD 275.94 million)) and EBIT to EUR 143 million (USD 174.60 million) (Q4 2016: EUR 101 million (USD 123.32 million)).
Revenues increased to EUR 10.0 billion (USD 12.21 billion) (2016: EUR 7.7 billion (USD 9.40 billion)), also supported by an improved average freight rate in 2017 of 1,051 USD/TEU (2016: 1,036 USD/TEU).
At the same time, Hapag-Lloyd increased the transport volume significantly by 29.0% to 9.8 million TEU (2016: 7.6 million TEU) whilst transport expenses increased by 25.5% to EUR 8.0 billion (USD 9.77 billion) (2016: EUR 6.4 billion (USD 7.81 billion)), mainly driven by the increase in transport volumes and a higher average bunker consumption price of USD 318/tonne (2016: USD 226/tonne). The average exchange rate was at 1.13 USD/EUR compared to 1.10 USD/EUR in 2016.
As of 31 December 2017, Hapag-Lloyd had EUR 6.1 billion (USD 7.45 billion) (2016: EUR 5.1 billion (USD 6.23 billion)) in equity and a liquidity reserve (cash, cash equivalents and unused credit facilities) of EUR 1.1 billion (USD 1.34 billion) (2016: EUR 0.8 billion (USD 0.98 billion)).
The equity development was also driven by the merger with UASC as well as a capital increase of EUR 352 million (USD 429.79 million) that was successfully completed in October 2017. Net debt amounted to EUR 5.7 billion (USD 6.96 billion) (2016: EUR 3.6 billion (USD 4.40 billion)).
All results are preliminary. The final full year 2017 group financial statements and the annual report 2017 will be published on 28 March 2018.
UASC Ltd. and its subsidiaries have been incorporated into the consolidated financial statements of Hapag-Lloyd since 24 May 2017, the date of transfer of control. As a result, the presented figures include the effects of the transaction from this time on and can therefore only be compared with prior-year figures to a limited extent, the company said in a press statement.
Sea News, March 1