According to an article published in Shipping Watch, German container line Hapag-Lloyd expects to see a significant improvement in earnings in the first three months of the year, where the 2021 results are expected to be “significantly higher” than in previous years.
Significant Improvement
The red-hot container market is expected to significantly boost Hapag-Lloyd’s results for the first quarter as well as 2021 as a whole.
From the outset of the year, the German container line thus looks ahead to extraordinarily strong demand and high rates, both of which are expected to result in significant earnings growth.
2021 Results Till Date
Overall, 2021 also looks set to bring “significantly higher” operating results (EBITDA and EBIT) than in previous year, writes the container line in an announcement.
The latter is, however, still associated with considerable uncertainty, asserts the company.
CEO’s Voice
“We will see a very strong result in the first quarter, but we anticipate a normalisation as the year progresses,” says CEO Rolf Habben Jansen in the statement.
However, the high demand is also causing problems in the container market right now, adds the chief executive. Containers continue to take a long time to return to the flow and bottlenecks are currently an issue in ports around the globe.
“Nevertheless, we do also expect that the result for 2021 as a whole will be significantly higher than the prior-year level,” says the chief executive, adding that Hapag-Lloyd will continue its work to implement its 2023 strategy.
Operating profit in 2020
For the first quarter, the operating profit (EBITDA) is expected to come to at least USD 1.8 billion. If this happens, it would be a significant improvement from the operating profit of USD 517 million in the first quarter of 2020.
However, the container line refrains from announcing its full-year 2021 guidance. In late January, the company presented preliminary financial figures, showing a profit of nearly USD 3 billion for 2020.
The final annual report is scheduled for publication on March 18.
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Source : Shipping Watch
