Despite the sharp drop in global volumes following the Covid-19 crisis, A.P. Moller – Maersk has recorded improved profitability across all businesses for Q2.
“Our operating earnings improved by 25%, marking the eighth consecutive quarter with year-on-year improvements, driven by strong cost performance across all our businesses, lower fuel prices, higher freight rates in ocean, and increased profitability in logistics and services,” says CEO Søren Skou.
“Earnings before interest, tax, depreciation and amortisation (EBITDA) improved to US$ 1.7bn, which is higher than the initial expectations in the trading update from June of an EBITDA slightly above US$ 1.5bn. The EBITDA margin increased from 14.1% in Q2 last year to 18.9%,” according to the statement.
“Revenue decreased by 6.5% to US$ 9bn, driven by a volume decrease of 16% in ocean and 14% in gateway terminals. In ocean, the lower volumes were partly offset by agile capacity deployment of the global network leading to lower costs, together with lower fuel prices and higher freight rates. In logistics and services, profitability increased through cost measures.”
For Q3 the line expects volumes to progressively recover with a current expectation of a mid-single digit contraction. Organic volume growth in ocean is expected to be in line with or slightly lower than the average market growth.
Earlier this week Freight News reported that Hapag-Lloyd’s too had posted positive results for the first half of the year, in line with predictions by maritime consultants for a profitable year for the shipping industry.
