Hapag-Lloyd shares slump as Red Sea attacks hit Q4 profits

(Sharecast News) - Shares in Hapag-Lloyd fell sharply on Tuesday as the shipping giant reported a 92% fall in fourth-quarter earnings as it felt the impact of attacks on commercial vessels by Iran-backed Houthi militants in the Red Sea. Core earnings came in at €300m in the three months to December compared to €3.8bnm a year earlier. Losses before interest and tax posted were €200m from a profit of €3.3bn.

Full year earnings fell in line with expectations as global supply chains normalised and freight rates fell, with 2023 Earnings before interest, taxes, depreciation, and amortisation of €4.5bn down from €19.4bn a year earlier.

"The conflict in the Red Sea negatively impacted transport volumes at the end of the year, as the rerouting of ships around the Cape of Good Hope extended voyage times," Hapag-Lloyd said in a statement.

Reporting by Frank Prenesti for Sharecast.com