Hapag-Lloyd swung to an operating profit of $631 million in fiscal 2009/10, from a year earlier loss of $875 million, as cargo volume and freight rates increased, and the company cut costs.
The German carrier made a "spectacular turn round" from the "verge of insolvency" a year ago, TUI, its largest individual shareholder with a 43.3 percent stake, said Tuesday.
Hapag-Lloyd contributed $198 million to Hanover-based travel group TUI's net income after a loss of $230 million a year ago.
TUI chief executive officer Michael Frenzel said Hapag-Lloyd's performance justified the company's decision to pump money into the carrier to keep it afloat during the container shipping slump.
"We therefore have resources and options available that we would hardly have considered possible a year ago," Frenzel said.
Hapag-Lloyd's financial recovery has bolstered TUI's plan to exit container shipping through an initial public offering for the carrier or the sale of its stake to financial or strategic investors.
"We currently see a favorable time window for exiting our Hapag-Lloyd position," said Horst Baier, TUI's chief financial officer.
"Container shipping is in a very healthy state and currently operates in an upward cycle," Baier said.
Chances for an IPO in 2011 are good "if the markets remain open," Frenzel said. "In parallel we are also exploring the option of selling our shares to individual investors."
TUI's stake in Hapag-Lloyd will rise to 49.8 percent by the end of the year when it converts a hybrid loan into equity.
The remainder of the world's fifth largest ocean carrier is held by the Albert Ballin consortium.
TUI and the Albert Ballin consortium last week appointed Goldman Sachs, Credit Suisse and Greenhill & Co. to prepare a sale of Hapag-Lloyd.
The German carrier made a "spectacular turn round" from the "verge of insolvency" a year ago, TUI, its largest individual shareholder with a 43.3 percent stake, said Tuesday.
Hapag-Lloyd contributed $198 million to Hanover-based travel group TUI's net income after a loss of $230 million a year ago.
TUI chief executive officer Michael Frenzel said Hapag-Lloyd's performance justified the company's decision to pump money into the carrier to keep it afloat during the container shipping slump.
"We therefore have resources and options available that we would hardly have considered possible a year ago," Frenzel said.
Hapag-Lloyd's financial recovery has bolstered TUI's plan to exit container shipping through an initial public offering for the carrier or the sale of its stake to financial or strategic investors.
"We currently see a favorable time window for exiting our Hapag-Lloyd position," said Horst Baier, TUI's chief financial officer.
"Container shipping is in a very healthy state and currently operates in an upward cycle," Baier said.
Chances for an IPO in 2011 are good "if the markets remain open," Frenzel said. "In parallel we are also exploring the option of selling our shares to individual investors."
TUI's stake in Hapag-Lloyd will rise to 49.8 percent by the end of the year when it converts a hybrid loan into equity.
The remainder of the world's fifth largest ocean carrier is held by the Albert Ballin consortium.
TUI and the Albert Ballin consortium last week appointed Goldman Sachs, Credit Suisse and Greenhill & Co. to prepare a sale of Hapag-Lloyd.