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Investing.com -- Hapag Lloyd AG (ETR:HLAG) reported a surge in earnings for the fourth quarter, with profits quadrupling compared to the same period last year.
The German shipping giant’s earnings before interest and taxes soared to €800 million in Q4, a sharp turnaround from a loss of €218 million in the year ago quarter.
The company also posted a fourth-quarter EBITDA of €1.3 billion, a jump from €299 million in in the year ago quarter, underscoring the extent of the financial recovery.
The robust performance was underpinned by a notable increase in transport volumes, which rose by 5% year-on-year, outpacing Bloomberg’s consensus estimate of 3%.
Freight rates remained elevated, with a 32% year-on-year increase to $1,564 per twenty-foot equivalent unit, though they were down 3% from the previous quarter.
Barclays (LON:BARC) analysts attributed the strong volume growth to a quick demand recovery following China’s Golden Week holiday, as well as a degree of front-loading ahead of anticipated tariffs.
For the full year 2024, EBITDA reached €4.6 billion, hitting the upper range of the company’s guidance of €4.2 billion to €4.6 billion.
However, despite these strong figures, Barclays maintained a cautious stance on Hapag-Lloyd and the broader container shipping sector.
Analysts reiterated concerns about the sustainability of current freight rates, predicting that spot rates could soften from late January due to the early timing of the Chinese New Year and potential labor disruptions on the U.S. East Coast.