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Thu 8 Aug 2019, 07:42 GMT

Hapag posts double-digit rise in bunker price, expenses


Bunker costs climbed to EUR 822.2m in H1 as the average fuel price increased by 11.4 percent.


Image credit: Hapag-Lloyd
Hapag-Lloyd reports that it consumed 2.2m tonnes of bunker fuel during the first half (H1) of 2019.

In the first H1 like-for-like comparison since the completion of the merger with United Arab Shipping Company (UASC) on May 24, 2017, bunker consumption was level with the figure reported during the corresponding period last year.

The amount of marine fuel used during the second quarter (Q2) of 2019 was 1.1m metric tonnes - equalling the quantity sold in the previous quarter and Q2 2018.

On a per-transported-TEU basis, bunker consumption in H1 was 0.37 tonnes per TEU - the same as last year.

Approximately 12 percent of marine fuel consumed by Hapag-Lloyd in H1 contained a low proportion of sulphur in the form of low-sulphur (0.1 percent) marine fuel oil (MFO) or marine diesel oil (MDO), Hapag-Lloyd said. Last year, the figure was also 12 percent, whilst in H1 2017, roughly 15 percent of bunkers consumed were recorded as being low in sulphur content.

Hapag-Lloyd: Bunker consumption

2019 (MMT) 2018 (MMT)
H1 2.2 2.2
Q2 1.1 1.1
Source: Hapag-Lloyd


Average bunker price

The average price paid for bunkers by Hapag-Lloyd in H1 was $429 per tonne, which was a YoY rise of $44, or 11.4 percent, on the $385-per-tonne figure posted in the prior-year period.

Bunker expenses

Marine fuel expenses in H1 increased YoY by EUR 129m, or 18.6 percent, to EUR 822.2m, which Hapag-Lloyd said was primarily due to higher bunker prices.

Second-quarter costs were up EUR 60.4m, or 16.4 percent, to EUR 427.6m compared to the Q2 2018 result of EUR 367.2m.

Hapag-Lloyd: Bunker expenses

2019 (EUR) 2018 (EUR)
H1 822.2m 693.2m
Q2 427.6m 367.2m
Source: Hapag-Lloyd


Key financial results

In its overall results, Hapag-Lloyd posted a group Q2 profit of EUR 50m (EUR 67m loss in Q2 2018), and a H1 profit of EUR 146m (EUR 101m loss in H1 2018).

Second-quarter earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped YoY by EUR 256m, or 121.3 percent, to EUR 467m, whilst in H1 it climbed EUR 529m, or 123.9 percent, to EUR 956m.

Earnings before interest and taxes (EBIT) skyrocketed YoY by EUR 136m, or 340 percent, to EUR 176m in Q2. In H1, EBIT surged EUR 298m, or 327.5 percent, to EUR 389m.

Revenue rose in Q2 by EUR 363m, or 12.9 percent, to EUR 3,175m; and in H1, revenue grew EUR 807m, or 14.9 percent, to EUR 6,238m.


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