HHLA Records Revenue Growth and Strong Earnings

Hamburger Hafen und Logistik AG (HHLA) recorded significant year-on-year growth in its key performance indicators in the first half of 2017. Group revenue rose by almost 9 percent to € 622.8 million. While the Group’s operating result (EBIT) climbed by approximately 48 percent to € 98.8 million, the Port Logistics subgroup’s EBIT grew by just over 54 percent to € 90.6 million. This was primarily attributable to higher earnings in the Container segment due to an increase in volumes as well as to the successfully completed restructuring in the Logistics segment, which let to one-off expenses in the first half of 2016. Throughput at the HHLA container terminals stood at 3.6 million standard containers (TEU) – some 12 percent higher than in the first six months of last year. The Intermodal subsidiaries also achieved volume growth of approxi­mately 7 percent to more than 744,000 TEU.

Commenting on the positive course of business in the first half, Angela Titzrath, Chairwoman of HHLA’s Executive Board, said, “Following the reorganisation of the alliances of the shipping companies, HHLA managed to maintain its strong position in contested market environments. We are not just benefiting from ongoing positive economic developments in the world and in Germany; we are also profiting from our own service capability. HHLA took timely steps to prepare for this upswing by making targeted investments in our facilities. This means we can offer our customers a range of services that offer a high level of quality and reliability, and thus generate growth at the Port of Hamburg with them.”

In the first half of 2017, throughput at HHLA’s container terminals was up almost 12 percent on the first six months of the previous year at 3.6 million TEU. Throughput increased by 11.8 percent to 3.4 million TEU at the three container terminals in Hamburg (previous year: 3.1 million TEU). This growth was primarily driven by a recovery on Asian routes (+ 16.1 %) and significant increase in feeder traffic with the Baltic Sea ports (+ 22.4 %). Container throughput at the terminal in Odessa also developed positively in the first half of 2017. At more than 145,000 TEU, it was approximately 10 percent higher than one year earlier (previous year: more than 132,000 TEU). Revenue in the Container segment rose by 10.6 percent to € 372.3 million (previous year: € 336.6 million). At 25.8 percent, growth in the operating result (EBIT) outperformed the rise in volumes, taking it to € 68.1 million (previous year: € 54.2 million).

HHLA’s Intermodal companies recorded significant growth in a highly competitive market. They increased their transport volumes to more than 744,000 TEU (previous year: more than 694,000 TEU). This development was driven by growth in both rail and road transport. Compared to the first half of 2016, rail transportation rose again by 5.9 percent to more than 568,000 TEU (previous year: approximately 537,000 TEU). Road transport also developed very positively with growth of 11.8 percent to more than 176,000 TEU (previous year: approximately 158,000 TEU) as a result of strong freight volumes in the metropolitan area of Hamburg. Revenue in the Intermodal segment grew by 8.1 percent to € 206.2 million (previous year: € 190.8 million). The operating result (EBIT) rose compared to the same period last year to € 34.9 million (previous year: € 33.7 million).

HHLA’s Executive Board has updated its forecast for the 2017 financial year in view of the positive developments in the Container segment and the persistently upbeat economic outlook. A Group operating result (EBIT) within a range between € 150 million and € 170 million is now anticipated, while the EBIT of the Port Logistics subgroup is expected to be within a range between € 135 and € 155 million, both including possible one-off expenses of up to € 15 million for reorganisation in the Container segment. Previously, the Group’s EBIT was expected to be in the upper half of a range between € 140 million and € 170 million, while the guidance for the Port Logistics subgroup was in the upper half of a range between € 125 and € 155 million, both excluding possible one-off expenses of up to € 15 million.

The Half-year Financial Report is available at:
report.hhla.de/half-year-financial-report-2017