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Hapag-Lloyd gets 2020 off to a Decent Start Despite Coronavirus Pandemic, but Uncertainties Remain for the Year

15.5.2020

Hapag-Lloyd gets 2020 off to a decent start despite coronavirus pandemic, but uncertainties remain for the year

The issuer is solely responsible for the content of this announcement/Hamburg, 15 May 2020

Hapag-Lloyd gets 2020 off to a decent start despite coronavirus pandemic, but uncertainties remain for the year

- Transport volumes and freight rates improved

- Earnings impacted by higher bunker prices and negative valuation effects

- Clearly positive free cashflow and solid liquidity reserve

- Effects of the coronavirus pandemic expected to become more visible in the second quarter

- Wide range of measures formulated to safeguard financial performance

For the first quarter of 2020, Hapag-Lloyd recorded earnings before interest and taxes (EBIT) of USD 176 million (EUR 160 million), which is below the corresponding prior-year figure of USD 243 million (EUR 214 million). The Group net result declined to approximately USD 27 million (EUR 25 million). Earnings before interest, taxes, depreciation and amortisation (EBITDA) decreased slightly to USD 517 million (EUR 469 million).

Revenues increased in the first quarter of 2020 by around 6 percent, to USD 3.7 billion (EUR 3.3 billion). This can primarily be attributed to a 4.3 percent increase in transport volumes, to more than 3 million TEU, and an improved average freight rate of USD 1,094 per TEU. Transport expenses increased by almost 10 percent, disproportionately to revenues, particularly due to higher bunker costs, which increased by USD 98 to USD 523 per tonne as a result of the transition to low-sulphur fuel oil required by the IMO 2020 regulation.

This had a negative impact on earnings, as did a devaluation of bunker inventories of around USD 64 million (approximately EUR 58 million) due to the rapid decline in crude oil prices that began at the end of the first quarter.

Free cashflow was once again clearly positive at USD 302 million (EUR 274 million). At the end of the first quarter, the liquidity reserve stood at approximately USD 1.2 billion (EUR 1.1 billion), thereby remaining at a persistently good level.

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