Hapag-Lloyd Raises Guidance Again on Strong Demand, Freight Rates

Dow Jones09-29 13:29
 
 

Hapag-Lloyd raised its full-year earnings guidance again as it continues to see strong market demand and positive developments in spot freight rates.

The German shipping company said Tuesday that it now expects group earnings before interest, tax, depreciation and amortization between $3.9 billion and $4 billion, up from a previous estimate of $2.7 billion to $3.7 billion.

Group earnings before interest and tax is seen at $1.25 billion to $1.75 billion from $100 million to $1.1 billion previously.

However, it cautioned that freight rates are volatile and that given the current persistent geopolitical challenges, the outlook is subject to a high degree of uncertainty.

Hapag-Lloyd had upgraded its guidance as recently as July, again citing strong market demand and higher freight rates.

Container shipping operators have seen freight rates remain robust, benefiting from tighter capacity amid port congestion in certain regions and as ships have been forced on longer journeys to avoid conflict zones in the Middle East.

In euro terms, the company's new guidance corresponds to expected group Ebitda of between 3.4 billion euros and 3.8 billion euros, from 2.3 billion-3.2 billion euros previously. Group EBIT is seen at 1.1 billion-1.5 billion euros from 100 million to 1 billion euros previously.

 
 

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