Financial News

HAPAG - LLOYD AG: 2014 financial year impacted by one-off effects and freight rate trend - substantial positive operating result in 2015

DGAP-News: HAPAG - LLOYD AG / Key word(s): Final Results

2015-03-27 / 08:00

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Transport volume increased in 2014 by 7.5% / Fleet modernization planned /
Strategic partnerships boost Latin American business / Extensive measures
under way to improve competitiveness / Integration of CSAV progressing well

Hapag-Lloyd's transport volume grew by 7.5% to 5.9 million TEU in the past
financial year. The average freight rate was down 3.2% year-on-year at USD
1,434/TEU, while revenue rose by 3.7% to EUR 6.8 billion. EBITDA came to
EUR 98.9 million (previous year: EUR 389.1 million) and the operating
result to EUR -112.1 million (previous year: EUR 67.2 million).

The Group net result of EUR -603.7 million (previous year: -97.4 million)
was heavily influenced by one-off effects, primarily the costs of acquiring
and integrating CSAV's container liner shipping activities and an
impairment recognized for a portfolio of old ships. The plummeting price of
oil eased the cost situation slightly, but only towards the end of the year
as falling fuel prices at liner shipping companies take several months to
be reflected in the figures. The average bunker consumption price for 2014
as a whole stood at USD 575/t (previous year: USD 613/t).

The merger with CSAV's container business and the associated capital
measures have improved Hapag-Lloyd's capital structure. Equity of EUR 4.2
billion and an equity ratio of 41.2% are testament to the Company's healthy
balance sheet. With a liquidity reserve of over EUR 920 million, the
Company is well positioned for the future.

"In terms of results, 2014 was undoubtedly an extremely disappointing year.
At the same time, however, the successful merger with CSAV also made it a
highly significant, ground-breaking year for Hapag-Lloyd. We are now much
more competitive and fit for the future, to which we are looking with
optimism," said Hapag-Lloyd CEO Rolf Habben Jansen.

The merger will bring annual savings of at least USD 300 million.
"Integrating CSAV's container business is running on schedule. We have
already been able to exploit the first synergies, with many joint projects
currently under way." CSAV's services are being incorporated into
Hapag-Lloyd's global network. The integration is set to be complete by
June. "As well as the integration, we have launched a wide range of other
measures from which we expect a substantial improvement in earnings,"
Habben Jansen continued. These include optimizing sales processes and costs
as well as modernizing the fleet. Hapag-Lloyd is currently in negotiations
with several shipyards in this regard and will be ordering new ships over
the coming weeks.

Together with Hamburg Süd, CMA CGM and other shipping companies,
Hapag-Lloyd will be offering new products between Asia and the western and
eastern coasts of Latin America from July onwards. These services will
employ over 50 ships in all, with Hapag-Lloyd contributing 20 of them. This
includes CSAV's seven efficient 9,300 TEU newbuildings. Five from this
series are already in service, with the final two set to be delivered in
early May and early June.

"The merger with CSAV marks the opening of a new chapter in Hapag-Lloyd's
168-year history. We are now looking ahead and focusing our efforts on
returning Hapag-Lloyd to profitability and achieving a clearly positive
operating result in 2015," Habben Jansen concluded.



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2015-03-27 Dissemination of a Corporate News, transmitted by DGAP - a
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