Maersk boosts second quarter profits

Maersk posted a 17% increase in earnings before interest, taxes, depreciation, and amortization (EBITDA) to US$1.4bn in the second quarter compared to the same quarter last year. Revenue rose slightly to US$9.6bn, which is on par with last year, and underlying profit increased to US$134m from US$15m in the second quarter of 2018.

“The second quarter had solid progress. EBITDA was up 17% and cash flow improved 86% over the previous year, driven by Ocean’s continued recovery,” says Søren Skou, CEO of A.P. Moller-Maersk.

Due to increases in freight and volume rates, Oceania’s second quarter EBITDA increased 25% to US$1.1bn. Ocean’s business continued to recover at the best unit cost, utilization and reliability, and revenue grew 2.9% to US$7.2bn compared to 2Q 2018.

Revenue in Terminals and Towing grew 13% to US$957m from 2Q last year. In gateway terminals, volume in the second quarter grew 8.5% over last year, leading to higher utilization. EBITDA increased by 11%, partially offset by one-off items.

In Logistics and Services, EBITDA increased to US$61m in the second quarter, compared to US$52m in the same quarter last year. Revenue was US$1.5bn, positively impacted by increased revenue from supply chain management, but offset by declining sea and air freight revenue.

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