Container shipping liner Hapag-Lloyd has today reported an 18.9% lower net profit for 2024 and proposed a 11.4% cut in its divided from 2023, citing lower interest income and higher tax expenses.
Key earnings figures for 2025 were expected to range below those reported for 2024, said chief executive Rolf Habben Jansen, attributing this to considerable uncertainty amid volatile freight rates and major geopolitical changes.
"The economic and geopolitical environment remains fragile. In this context, we anticipate earnings in 2025 to be lower than in 2024," he said.
The company, which started a co-operation deal with rival Maersk in February, would keep a close eye on unit costs and develop its terminal business and onshore businesses in the current year, he said.
Container shipping, a proxy for trade and a health measure of the world economy, has been exposed to the ongoing Red Sea crisis, where the Iran-backed Houthi militants launch attacks on vessels.
The sector is now also grappling with the effects of tariffs introduced by US President Donald Trump.
Net profit at Hapag-Lloyd fell to €2.4 billion in 2024 from €2.9 billion a year earlier. The dividend proposal is €8.20 a share, down from €9.25.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) for 2025 were forecast at between €2.4 and €3.9 billion, down from €4.6 billion in 2024. The company reported preliminary earnings on January 30.
Earning before interest and taxes (EBIT) for 2025 were forecast at between zero and €1.5 billion after the €2.6 billion posted in 2024.
Revenues in 2024 rose 6.7% to €19.1 billion on 5% higher transport volumes and stable freight rates.
Hapag-Lloyd, with a fleet of 299 container vessels, is the world's fifth largest shipping liner.
