Hapag-Lloyd (HLAG) Q2 2024 earnings summary

Executive summary

• H1 2024 featured strong demand and operational disruptions from Red Sea attacks, with network adjustments and additional vessel deployments.

• EBIT reached approximately $0.9 billion (USD 813 million/EUR 813 million), supported by higher volumes and increased freight rates despite higher operating costs.

• Strategic milestones included delivery of six newbuild vessels, expansion of terminal operations, and digital product launches.

• Preparations for the Gemini cooperation are underway, with operations set for early 2025.

• Revenue declined 12% year-over-year to EUR 8.8 billion, mainly due to a 21% drop in average freight rates, despite a 5% increase in transport volumes.

Financial highlights

• H1 2024 revenue was USD 9.5 billion (EUR 8.8 billion), down 12% year-over-year; EBITDA was USD 2.0 billion (EUR 1.8 billion), and EBIT was USD 0.9 billion (EUR 813 million).

• Group profit declined 75% year-over-year to $791 million (EUR 731.6 million); EPS at USD 4.45 (EUR 4.12).

• Free cash flow for H1 2024 was $0.5 billion (EUR 456 million), with net liquidity at $0.4 billion (EUR 378 million).

• Q2 2024 EBITDA rose 9% sequentially to $1.028 billion, and EBIT increased 23% to $485 million.

• Equity ratio at 62.1% as of June 30, 2024.

Outlook and guidance

• Full-year 2024 EBITDA now expected at EUR 3.2–4.2 billion (USD 2.2–3.3 billion); EBIT at EUR 1.2–2.2 billion (USD 0.0–1.1 billion), raised in July.

• Transport volume expected to increase moderately, with freight rates and bunker prices to decline slightly.

• Q3 expected to be stronger than Q2, but outlook remains highly uncertain due to volatile rates and geopolitical risks.