Hapag llyod Q3 2024 $HLAG (+1,67%)

Financial performance:

• Revenue: Remained stable at USD 15.3 billion for the first nine months of 2024, in line with the previous year.
• EBITDA: Decrease in EBITDA to USD 3.6 billion compared to USD 4.5 billion in the previous year.
• Net profit: Generated a net profit of USD 1.8 billion for the first nine months of 2024.

Balance sheet overview:

• Shareholders' equity: Remained unchanged from the end of fiscal 2023 at USD 20.9 billion as of September 30, 2024.
• Net liquidity: Significantly decreased to USD 0.8 billion from USD 2.9 billion at year-end 2023.
• Liquidity reserve: Remained stable at USD 8 billion.

Details of the income statement:

• Operating result: Strong operating result for Q3 2024 at USD 1,057.8 million, a significant increase compared to the same quarter last year.
• EBIT: Achieved an EBIT of USD 1,060.6 million in Q3 2024.

Cash flow overview:

• Operating cash flow: For the first nine months of 2024, operating cash flow amounted to USD 3,096 million.
• Free cash flow: Decrease to USD 1,661 million from USD 3,433 million in the prior-year period.

Key figures and profitability metrics:

• EBITDA margin: EBITDA margin increased to 28.1% in Q3 2024 compared to 21.0% in Q2 2024.
• Equity ratio: Was a solid 61.9% as at September 30, 2024.

Segment information:

• Liner Shipping: Revenue in Q3 2024 amounted to USD 5,668 million with an EBITDA margin of 27.9%.
• Terminal and infrastructure sector: Revenue in Q3 2024 amounted to USD 110 million with an EBITDA margin of 39.2%.

Competitive position: The company was able to increase its average freight rates in Q3 2024 due to strong demand on the Transpacific and Far East routes.

Forecasts and management commentary: The earnings outlook for the financial year 2024 has been raised, supported by stronger demand and improved freight rates. Group EBITDA is expected to be between USD 4.6 and 5.0 billion.

Risks and opportunities:

• Risks: Ongoing geopolitical tensions in the Middle East and volatile freight rates could pose challenges.
• Opportunities: Improved earnings outlook and solid demand growth offer positive prospects.

Summary of results:

Positives:

• Earnings growth in Q3 2024: Strong performance supported by improved volumes and pricing adjustments.
• Increase in average freight rates: Benefited in particular from demand on Transpacific and Far East routes.
• Raised outlook for FY 2024: Expected EBITDA for the full year is higher due to increased demand.
• Strong equity ratio: With an equity ratio of 61.9%, the company demonstrates a solid financial base.
• Improved EBITDA margin: Increased significantly to 28.1% in Q3 2024.

Negative aspects:

• Decline in EBITDA: Decrease from USD 4.5 billion to USD 3.6 billion due to cost pressures and potentially lower volumes.
• Significant decrease in net liquidity: Sunk to USD 0.8 billion, which could affect financial flexibility.
• Lower free cash flow: Decline year-on-year, which could indicate lower operating efficiency or higher investment requirements.
• High transportation costs: Continue to weigh on earnings and pose a challenge to margins.
• Geopolitical uncertainties: Tensions and disruptions in supply chains may pose further risks.