Q2 2024 Hapag-Lloyd AG Earnings Call Transcript
Key Points
- Hapag-Lloyd AG (HPGLY) posted a good financial result for the first half with an EBIT of around $0.9 billion.
- Global container volumes were up 7% in the first half, with May and June recording the highest numbers ever.
- The company successfully renewed lease contracts in Port Everglades for another 10 years.
- Hapag-Lloyd AG (HPGLY) managed to maintain a very solid balance sheet with an equity position of USD20 billion and a liquidity reserve of USD7 billion.
- The company continued to invest in fleet and new service offerings, including the addition of six newbuildings, increasing capacity to 2.2 million TEUs.
- Group profit fell 75% to USD791 million in the first half of 2024 due to lower operating profits and financial results.
- Higher operating costs were driven by increased bunker consumption and the need to deploy more ships and containers.
- Freight rates declined 21% year over year to USD1,391 per TEU in the first half of 2024.
- The Middle East volumes were affected by the difficult security situation around the Red Sea, resulting in 21% lower volumes in the first half.
- Unit costs remained elevated despite successful cost measures, with bunker costs increasing due to the inclusion of the shipping sector in the EU emission trading system.
Ladies and gentlemen, welcome to the Hapag-Lloyd Analysts and Investors H1 2024 results conference call. Hapag-Lloyd is represented by Rolf Habben Jansen, CEO; and Mark Frese, CFO. I'm Maria, the Chorus Call operator. (Operator Instructions)
The conference must not be recorded for publication or broadcast. It's my pleasure to hand over to Rolf Habben Jansen. Please go ahead.
Thank you very much and good morning, everyone or good afternoon, maybe to some of you dialing there. Thank you very much for taking the time to listen to us here. As always, we'll give you a short introduction with a couple of key messages and some more detail on the numbers before we open for Q&A. In terms of what should be the key takeaways, I believe from the first half, I would say first half first, we had the disruptions caused by the Red Sea.
And then in the second quarter, I think we saw unexpected strong demand, especially in May and June. In order to meet those
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