Thanks to early synergies realised from the acquisition of Hamburg Süd, A.P. Moller-Maersk registered a 31% increase in total revenue to US$10.1 billion in the third quarter of this year compared to the same period in 2017.
However, even without Hamburg Süd Maersk recorded a 12% increase in total revenue, with growth in non-ocean at 15% – contributing 31% of the shipping line’s total revenue.
“Our profitability and cash flow is improving, positively impacted by the emergency bunker surcharge announced due to the significant increase in bunker price, synergies from Hamburg Süd and strong collaboration between ocean and our terminal activities,” said Maersk CEO, Søren Skou.
“Our business performance in ocean is still challenged by increased bunker prices not being fully compensated through higher freight rates,” added Skou. “However, we continue to see improved results in the third quarter after a very weak start to 2018.”
The line recorded a profit of US$251 million, against US$254 million in 2017. Additionally, earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 15% despite the bunker price having increased by 47%.
Skou noted that the Danish shipping conglomerate expected an EBITDA in the range of US$3.6 to US$4 billion for the entire 2018, along with organic volume growth in ocean in line with the estimated average market growth of 3 to 4 %.
Additionally, gross capital expenditure for 2018 is projected to be around US$3 billion, and US$2 to US$2.5 billion in 2019.
