A crane on a cargo ship loads a branded AP Möller-Maersk container.
Balint Porneczi | Bloomberg Getty Images
The world’s largest container shipping company, Maersk, on Wednesday expected a pick-up in demand in view of third-quarter profit expectations.
The Danish company, seen as a bellwester for global trade, reported a 39% quarterly increase in income before tax, depreciation and amortization (EBITDA) to $ 1.5 billion with $ 1.5 billion in free cash flow.
The company reported a 1.4% decline in revenue, which was expected to coincide with a decline in operations of the company’s Ocean and Gateway terminals, “resulting in a 11% partial increase in revenue in Logistics & Services due to acquisitions,” earnings report Is mentioned in
Despite being negatively impacted by a “drastic drop in volume” in the previous quarter, the company dropped full-year guidance ahead of the anticipated spike in third-quarter demand, as measures to curb the coronovirus epidemic eased worldwide Was made .
The board has also opted to release a new share buyback program of 10 billion Danish krone ($ 1.59 billion), which will run for 15 months from December 2020.
Maersk CEO Soren Skou said in a statement on Wednesday, “The rapid recovery in demand following the Q2 recession led to significantly higher prices in the short-term market, along with the reactivation of all available tonnes.” The firm’s profitability focus helped deliver a particularly strong quarter in its ocean operations.
Scau said the epidemic weighs on the world’s supply chain, and added that this high level of uncertainty will remain in the coming quarters, with lockdown measures being implemented in different parts of the world.