German shipping company Hapag-Lloyd said it accelerated cost cuts in the first half of 2018 to offset higher operational costs from fuel costs, charter rates and a slow recovery in freight rates.
“We have implemented additional measures to recover these costs: we are critically reviewing the economic viability of our ship systems and are further optimising our terminal contracts,” Chief Executive Rolf Habben Jansen said.
Its shares rose 2.6 percent in early trades.
Freight rates fell 45 percent, causing Hapag-Lloyd’s first half net loss to widen by 58 percent to 100.9 million euros ($115.7 million), from a 42.7 million euros loss a year earlier.
Earnings before interest and taxes dipped to 88.7 million euros, just below the 90.7 million euros in the year-ago period.
Hapag-Lloyd in June cut its full-year profit forecast, saying freight rates had recovered more slowly than expected, while fuel costs had ballooned as global oil prices respond to supply disruptions and tightness.
($1 = 0.8724 euros)
(Reporting by Edward Taylor Editing by Victoria Bryan)