Hapag-Lloyd ends losing streak with Q1 profits

HAPAG-LLOYD has posted first quarter operating earnings (underlying EBITA) of EUR 24 million (US$36.74 million), following a EUR33 million loss.

First quarter revenues grew by 2.4 per cent compared to the same quarter a year earlier to EUR1.51 billion.

The stronger results follow a significant increase in freight rates, despite volumes being almost flat and below expectations, mainly due to sluggish transatlantic trades.

This comes as the separation of Hapag-Lloyd from the tourism group and parent TUI has been moving forward, following the mandating of investment banks. No preliminary decision has been taken as to how the shipping line will be separated and who the potential buyer will be, although management is said to prefer a divestment.

Meanwhile, major shareholder John Fredriksen is seeking election on the board along with his right hand man Tor Olav Troim as new supervisory members, given that there is no shipping expertise represented in the supervisory board.