With volumes having rebounded more quickly than expected, A.P. Moller - Maersk is on track to deliver a strong Q3 with solid earnings growth across all its businesses, in particular in ocean and logistics and services, according to CEO Søren Skou.
“Our costs have remained well under control, freight rates have increased due to strong demand, and we are growing earnings rapidly in logistics and services. The outlook for Q4 is solid for the same reasons, and we are therefore able to upgrade our expectations for the full year,” he says.
The outlook for 2021 however remains uncertain. “Potential new lockdowns will impact demand and the timing and effectiveness of a potential vaccine will impact 2021.”
The company has reported an unaudited revenue of US$ 9.9bn and an EBITDA before restructuring and integration costs of US$ 2.4bn for Q3, driven by a continued recovery in demand and initiatives to improve cost. Volumes in ocean declined by around 3% compared to the previous year, which is slightly better than the anticipated mid-single digit contraction, he adds.
“Trading conditions for the quarters ahead remain subject to a higher-than-normal uncertainty given the disruptions caused or potentially being caused by Covid-19.”
The company also expects to take a restructuring charge of around US$ 100m in Q3 related to the redundancies of approximately 2 000 employees as a consequence of the changes announced on September 1 – the incorporation of Damco and the Safmarine brand.