Sign in
Hapag-Lloyd recorded a 84% y-o-y decrease in its bottomline to USD 325 mn in 1Q 2024 from USD 2.03 bn in 1Q 2023,according to an earnings release. The company’s revenues for the period were 4.6 bn, down 23.27% y-o-y. Shipping rates stabilized in 1Q due to the rerouting of ships around the Cape of Good Hope and higher demand for capacity. Delivery of several new ships across 2024 were also instrumental to keeping supply chains going without disruption, Hapag-Lloyd CEO Rolf Habben Jansen said in the statement.
This isn’t a shocker: These results were not unexpected, as European shipping giants including Hapag-Lloyd and Maersk predicted modest returns in 1Q 2024 despite a surge in freight rates on the back of Red Sea disruptions. Hapag Lloyd predicted earnings before interest and tax (EBIT) at between a USD 1.1 bn loss and a USD 1.1 bn gain.
Chinese e-commerce giant Alibaba’s bottomline plummeted 86% in 1Q 2024 due to an unexplained writedown for losses in its holdings, Bloomberg reports. Chinese tech conglomerate Tencent Holdings, on the other hand, recorded a 62% surge in net income, surpassing company projections. Alibaba’s valuation fell to around USD 205 bn, while Tecent’s rose to USD 460 bn. Tencent’s performance is attributed to a boost in ad sales, an efficient marketing strategy, and cloud services. Alibaba’s top-line grew 6.6%, which is marginally higher than Tecent’s 6%.
US-based lender New York Community Bancorp (NYCB) is selling USD 5 bn in mortgage warehouse loans to JPMorgan Chase,Reuters reports. The move is set to boost NYCB’s capital and liquidity by cutting non-core assets to return to profitability over the coming two years. NYCB looks to limit exposure to the commercial real estate sector to about USD 30 bn, from about USD 47 bn in late March. The firm forecasts the transaction to add 65 basis points to its CET1 capital ratio, with the proceeds from the sale to be redirected into cash and securities.
