Hapag-Lloyd (HLAG) Q2 2024 earnings summary

Executive summary

• H1 2024 was marked by strong global demand, operational disruptions from the Red Sea crisis, and higher costs, prompting network adjustments and additional vessel deployments.

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

• Six newbuild vessels were delivered, expanding capacity and supporting network and terminal business growth.

• Preparations for the Gemini network transition with Maersk are on track, with operations set to start in February 2025.

• The Executive Board raised full-year 2024 earnings guidance in July due to stronger-than-expected demand and freight rates.

Financial highlights

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

• Group profit fell 75% year-over-year to $791 million (EUR 732 million), with EPS at $4.45 (EUR 4.12).

• Free cash flow was $0.5 billion (EUR 456 million), and net liquidity stood 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 is now expected at $2.2–3.3 billion (EUR 3.2–4.2 billion), and EBIT at $0.0–1.1 billion (EUR 1.2–2.2 billion), with guidance raised in July.

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

• Outlook remains highly uncertain due to volatile rates and geopolitical risks, especially in the Middle East.

• Q3 is expected to be stronger than Q2, with positive momentum continuing before a possible slowdown towards year-end.