Profit 19 per cent lower for Hapag-Loyd in 2024, to cut dividend

Container shipping liner Hapag-Lloyd on Thursday reported an 18.9 per cent lower net profit for 2024 and proposed a 11.4 per cent cut in its divided versus 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 cooperation 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 terrorists 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 euros ($2.61 billion) in 2024 from 2.9 billion a year earlier. The dividend proposal is 8.20 euros per share, down from 9.25 euros.

Revenues in 2024 rose 6.7 per cent to 19.1 billion euros on five per cent higher transport volumes and stable freight rates.

Hapag-Lloyd, with a fleet of 299 container vessels, is the world's fifth largest shipping liner.

(Reporting by Vera Eckert, editing by Ludwig Burger)