Lead Analyst, Credit Research, Drewry Maritime Financial Research

Konstantinos Oikonomopoulos

Lead Analyst, Credit Research

Maritime Sector, Equity & Credit Research

Drewry Maritime Financial Research

With no ties to other players in the shipping, finance or banking world, we provide a uniquely impartial view of the markets and companies we cover. Our parent organization, Drewry is a leading independent provider of research services to the maritime and shipping industry, employing over 100 professionals across an international network of offices in London, Delhi, Singapore and Shanghai. Combining our market-leading resources with seasoned sector expertise DFRS offers a highly differentiated and comprehensive range of investment and financial research services to lenders and prospective investors in publicly listed maritime and shipping companies. The full service of reports, supporting resources and sector orientated webinars provides our clients with the most complete picture of the organisations under coverage as is possible. We have been charting and analysing the world’s maritime markets for more than 40 years. This unrivalled intelligence and understanding provides the foundation of our research service. Our analysts have access to one of the most up-to-date, comprehensive and reliable sources of market insight and research data available today. We look at globally listed companies within the following sectors: Port Operators, Container Shipping, Container Manufacturing & Leasing, LNG Shipping, Dry Bulk Shipping and Tanker Shipping. Combine in-depth sector expertise with financial analysis focusing on over 50 stocks globally.

Credit

Credit positives<ul>
<li>S&amp;P upgraded CMA CGM by one notch to B+ on 10 Oct 2017. This was predicted by Drewry on 21 Sep when we published a note analysing the reasons we believe the company is set for a credit rating upgrade.</li>
<li>CMA CGM transported 11% greater volumes y/y in 3Q17 outperforming global throughput growth thanks to a good market environment additional capacity within Ocean Alliance. The group also achieved 13% higher rates per teu for the first 9M17 versus 9M16 at USD 1,098.9 per teu.</li>
<li>Credit…</li>
</ul>

Credit positives
S&amp;P upgraded CMA CGM by one notch to B+ on 10 Oct 2017. This was predicted by Drewry on 21 Sep when we published a note analysing the reasons we believe the company is set for a credit rating upgrade.
CMA CGM transported 11% greater volumes y/y in 3Q17 outperforming global throughput growth thanks to a good market environment additional capacity within Ocean Alliance. The group also achieved 13% higher rates per teu for the first 9M17 versus 9M16 at USD 1,098.9 per teu.
Credit…


CMA CGM Credit Research - Container Shipping

<ul><li>
Hapag-Lloyd (HL) group's performance for the first nine months of 2017 was dominated by the consolidation of UASC for the first time: The group reported significant growth in transported volumes, thanks to UASC's teu contribution, which in conjunction with higher freight rates (although UASC realised lower rates, +2.2% on 9M17 y/y), led to EUR 9.5bn revenues for the last 12 months at end-3Q17, 21% compared to the FY16 figure. The UASC integration led to cost savings that were partly offset by…</li></ul>


Hapag-Lloyd (HL) group's performance for the first nine months of 2017 was dominated by the consolidation of UASC for the first time: The group reported significant growth in transported volumes, thanks to UASC's teu contribution, which in conjunction with higher freight rates (although UASC realised lower rates, +2.2% on 9M17 y/y), led to EUR 9.5bn revenues for the last 12 months at end-3Q17, 21% compared to the FY16 figure. The UASC integration led to cost savings that were partly offset by…

Equity Research Analyst, Maritime sector, Drewry Maritime Financial Research

Ankush Kathuria CFA, FRM

Equity Research Analyst, Maritime sector

Equity Bottom-Up

Earnings development out of sync with equity sell-off. The stock market, being one of the barometers for any industry’s health, has turned out to be inimical to Hapag-Lloyd’s (HL) earnings in 2H17. After trading at a historical high since its IPO – in the range of EUR 35-40 – over a three-month period between August-October 2017, HL’s share price has softened and is currently hovering around the EUR 30-35 level. The current volatility in share price, despite the company posting one of its best…

Earnings development out of sync with equity sell-off. The stock market, being one of the barometers for any industry’s health, has turned out to be inimical to Hapag-Lloyd’s (HL) earnings in 2H17. After trading at a historical high since its IPO – in the range of EUR 35-40 – over a three-month period between August-October 2017, HL’s share price has softened and is currently hovering around the EUR 30-35 level. The current volatility in share price, despite the company posting one of its best…

Hapag-Lloyd AG (HLAG GR) - Decoding the Share Price Volatility

Profitability shot up in 2Q17, thanks to a better freight market and benefits from NOL acquisition: CMA CGM posted higher revenues by 57% y/y at the end of the second quarter at USD 5.5bn, which translates into USD 19bn annualised (USD  15.9bn at end FY16). The group benefitted from a 33% surge y/y (4.7 mteu) in transported volumes  (NOL's contribution, along with launch of Ocean Alliance) and improved freight rates. CMA CGM achieved a price of USD 1,134 per teu (container shipping revenues only…

Profitability shot up in 2Q17, thanks to a better freight market and benefits from NOL acquisition: CMA CGM posted higher revenues by 57% y/y at the end of the second quarter at USD 5.5bn, which translates into USD 19bn annualised (USD  15.9bn at end FY16). The group benefitted from a 33% surge y/y (4.7 mteu) in transported volumes  (NOL's contribution, along with launch of Ocean Alliance) and improved freight rates. CMA CGM achieved a price of USD 1,134 per teu (container shipping revenues only…

CMA CGM Credit Research 2Q17 Results Update - Credit Outlook Stable - Bond Valuation Neutral

Profit on expected lines. Hapag-Lloyd’s (HL’s) overall revenue for 2Q17 was EUR 2.4bn, which is up 28% y/y. This figure includes EUR 199m of revenue contribution from UASC, which completed its merger with HL on 24 May. The company’s EBITDA of EUR 229m was triple the figure reported last year which helped the margin to shoot up to 10% vs. 4% in 2Q16. The EBIT on the other hand came in at EUR 84m – a reversal from the loss of EUR 45m reported last year. This lifted HL’s operating margin to a…

Profit on expected lines. Hapag-Lloyd’s (HL’s) overall revenue for 2Q17 was EUR 2.4bn, which is up 28% y/y. This figure includes EUR 199m of revenue contribution from UASC, which completed its merger with HL on 24 May. The company’s EBITDA of EUR 229m was triple the figure reported last year which helped the margin to shoot up to 10% vs. 4% in 2Q16. The EBIT on the other hand came in at EUR 84m – a reversal from the loss of EUR 45m reported last year. This lifted HL’s operating margin to a…

Hapag-Lloyd AG (HLAG GR) - On Track to Maintain Full Year Profitability; Upgrade to Attractive

Germany

Hapag-Lloyd AG operates as a container shipping line company. The Company offers transportation of goods by sea, road, rail, and inland waterway vessels. Hapag-Lloyd serves customers worldwide.

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Hapag-Lloyd AG (HLAG GR)

CMA CGM Credit Research - Container Shipping

Credit positives S&P upgraded CMA CGM by one notch to B+ on 10 Oct 2017. This was predicted by Drewry on 21 Sep when we published a note...

Drewry Maritime Financial Research

DMFR - Credit Research - Hapag-Lloyd AG

Hapag-Lloyd (HL) group's performance for the first nine months of 2017 was dominated by the consolidation of UASC for the first time: The group...

Drewry Maritime Financial Research

CMA CGM Credit Research 2Q17 Results Update - Credit Outlook Stable - Bond Valuation Neutral

Profitability shot up in 2Q17, thanks to a better freight market and benefits from NOL acquisition: CMA CGM posted higher revenues by 57% y/y at...

Drewry Maritime Financial Research