HAMBURG (dpa-AFX) - Lower freight rates and rising costs caused profits at Hamburg-based shipping line Hapag-Lloyd to collapse last year. On total revenue of approximately 18.6 billion euros, the world's fifth-largest shipping company reported a consolidated net profit of 924 million euros, according to company statements. In the previous year, profit stood at nearly 2.4 billion euros on revenue of just over 19 billion euros.

Hapag-Lloyd to distribute a dividend of three euros per share

Hapag-Lloyd CEO Rolf Habben Jansen nevertheless described 2025 as a good year for the carrier. "We increased our transport volumes and outperformed the market." In light of the results, the Executive Board and Supervisory Board intend to propose a dividend of 3.00 euros per share to the Annual General Meeting. This represents a total payout of approximately 500 million euros.

As a shareholder, the Hanseatic City of Hamburg can expect to receive approximately 73 million euros before tax - down from around 200 million last year. Hamburg received its highest dividend by far during the Corona pandemic, when Hapag-Lloyd transferred more than 1.5 billion euros to the city for the 2022 financial year.

Habben Jansen sees difficult times ahead

For the current financial year, Habben Jansen anticipates challenging times for the shipping line. Adverse weather conditions had already weighed on business development at the start of the year. "Furthermore, the conflict in the Middle East is now causing significant disruptions to our network as well as a substantial increase in operating costs."

The shipping company is directly affected by the conflict involving Iran. A total of six vessels are stranded in the Persian Gulf because the Strait of Hormuz is effectively closed, Habben Jansen said. "We are exploring all possibilities to get our ships and crews safely out of the region. But at the moment, we have not yet found a solution."

Up to 50 million US dollars in additional costs - per week

Since the six ships are currently unavailable, 25,000 containers must be redistributed to other vessels. Costs have also risen significantly, particularly in the areas of fuel, insurance, and container storage. Habben Jansen stated: "We are incurring 40 to 50 million US dollars in additional costs - per week."

Hapag-Lloyd therefore expects a weaker result for the current financial year and does not rule out the possibility of losses. The Executive Board anticipates earnings before interest and taxes (EBIT) for the current year to range between minus 1.3 billion and plus 400 million euros. "This forecast remains subject to considerable uncertainty due to the highly volatile development of freight rates and the conflict in the Middle East," Hapag-Lloyd emphasized.

Acquisition of Israeli shipping company Zim by year-end

Habben Jansen defended the acquisition of the Israeli shipping line Zim: "We have similar strategies, we have similar values." He expects that synergies in the range of 300 to 500 million US dollars are possible. Zim is ranked tenth among the world's largest container shipping companies and is headquartered in Haifa. The agreed acquisition price was reported to be more than four billion US dollars.

Several approvals are still required for the deal, including from the State of Israel. These processes have already been initiated. The transaction is expected to be completed by the end of the year. An extraordinary general meeting at Zim is scheduled for April 30. Hapag-Lloyd's major shareholders include Qatar (12.3 percent) and Saudi Arabia (10.2 percent).

Hapag-Lloyd reports that it employs approximately 18,000 people worldwide, maintains a presence in 140 countries with 400 offices, and operates 133 liner services between more than 600 ports on all continents. The shipping company put its container inventory at 3.7 million TEU.

HHLA increases revenue but sees lower profit

Alongside Hapag-Lloyd, the Hamburg port logistics provider HHLA also presented its figures. While the company was able to increase revenue last year, profit was significantly lower. Consolidated revenue rose by nearly ten percent compared to 2024 to approximately 1.76 billion euros, as announced by Hamburger Hafen und Logistik AG (HHLA). Operating profit before interest and taxes (EBIT) also increased significantly by 19.5 percent to 160.5 million euros.

Nevertheless, only about 9.8 million euros remained in net income due to one-off tax effects. Because of the weak result, the Executive Board and Supervisory Board intend to propose to the Annual General Meeting that no dividend be distributed for the 2025 financial year. For the current financial year, HHLA expects an EBIT of between 175 and 195 million euros.

Last year, group-wide container throughput rose by 5.4 percent to approximately 6.3 million standard containers (TEU). Of this total, nearly 6.0 million TEU were handled at the Hamburg container terminals Burchardkai, Altenwerder, and Tollerort - 4.8 percent more than in 2024./klm/DP/men