Maersk containers aboard the Hammonia Husum container ship as it leaves the port of Portsmouth. (Photo by Andrew Matthews / PA Images via Getty Images)
Andrew Matthews | PA images | Getty Images
Maersk, the largest container company in the world, hit profit expectations in the second quarter on Wednesday, saying it expects demand to pick up in the third quarter, but warned of a “significant decline” through the year.
Despite being negatively impacted by a “sharp drop in volumes” in the second quarter, with revenues falling 6.5% from the same period last year when the world economy was shut down by the coronavirus pandemic, Maersk gave its lead on the all year on Wednesday.
The Danish company reported a 25% increase in EBITDA in the second quarter (income before interest, tax, depreciation and amortization) to $ 1.7 billion, above the $ 1,575 expected by analysts in a Refinitive poll.
Maersk, often seen as a clock for global trade, now projects 2020 EBITDA of between $ 6 billion and $ 7 billion, emerging from initial guidance of $ 5.5 billion.
The drop in turnover was attributed to a 16% decrease in the company’s Ocean division and 14% in gateway terminals, which Maersk said “was partly offset by increased freight rates and increased turnover per move in Terminals. “
“As a result of the lock-downs, closed borders and travel restrictions around the world, we have experienced major problems in alleviating our seafarers when their contracts expired, an ongoing issue of serious concern for us, which we proactively approach, “CEO Søren Skou said in the profit report.
Cash return on invested capital (CROIC) increased by 3.6 percentage points to 12.5%, and Skou said the income and balance sheet report indicated that Maesk was “well positioned to emerge financially and strategically stronger from the crisis.”
.
