14 November 2023 (Lloyd's List) - HAMBURGER Hafen und Logistik (HHLA) is maintaining its full-year outlook despite continuing market difficulties, particularly in its containers segment.
The terminal operator, in which Mediterranean Shipping Co has agreed to acquire a 49% stake, said its performance was still being affected as the war in Ukraine, inflation and high interest rates put pressure on consumer and industrial demand.
A stronger third quarter for container volumes failed to make up for losses earlier in the year, and shorter dwell times due to easing congestion resulted in reduced storage fees, dragging revenues down to €1.1bn ($1.2bn) for the first nine months. Group earnings before interest and tax fell by over half to €75.6m, with net profit of just €11.9m.
“The subdued economic situation continues to impact HHLA’s business activities as an international logistics company,” said chief executive Angela Titzrath.
“The resulting challenging macroeconomic framework conditions are therefore also reflected in the company’s results after the third quarter. However, it is all the more important to maintain our strategic course at times of multiple crises. Even in unsettled times, we are therefore working consistently on strengthening the company’s competitiveness and future viability and driving our sustainability efforts forward.”
Container throughput at all of HHLA’s container terminals decreased year on year by 8.5% to 4.5m teu. Throughput at Hamburg was down 6.9% to 4.2m teu.
“The main driver of this development was the decline in volumes of the Far East shipping region — China in particular,” HHLA said.
“The positive momentum from North American cargo volumes and the throughput volumes of the Middle East were unable to offset this trend.”
Feeder traffic volumes were also strongly down on the previous year. In addition to the reduction in Swedish and Polish traffic, volumes from Russia were also absent due to the sanctions.
At its international terminals, there has been no activity at Odessa since it was closed after the Russian invasion last February, and the TK Estonia terminal has seen a slump in demand as an alternative entry point for Russian trade.
“The notable increase in throughput volumes at the multi-function terminal HHLA PLT Italy was unable to offset this shortfall.”
HHLA expects the “significant” decrease in revenues to continue.
“This development is the result of a strong volume-related decline in revenue of the container segment which cannot be offset by a significant increase in revenue of the Intermodal segment,” it said.
This would also affect total group revenues, but HHLA is maintaining its ebit guidance of €115m-€135m, although an operating result at the lower end of this range is now regarded as probable.
