Maersk reports positive financial results for first quarter

A.P.Moller-Maersk reported positive financial results for the first quarter of this year, despite the impact of the COVID-19 pandemic on global trade.  According to the company, earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 23% year-on-year to US$1.5 billion. Revenues increased slightly, reaching US$9.6 billion.

“In the first quarter of the year, A.P.Moller – Maersk again showed profitable growth. The strong results were obtained during a quarter with sharp increases in the cost of fuel, derived from the industry’s switch to low sulfur fuel, and in the context of a contraction in global trade, due to blockages in most regions ”, says Søren Skou, CEO of AP Moller – Maersk.

The EBITDA on maritime services increased by 25% to US$1.2 billion in the first quarter of 2020. More than 90 crossings were canceled, leading to a 3.5% decline in Maersk’s average capacity used in the first quarter.

For land transport, Logistics & Services, excluding the freight forwarding business, EBITDA increased from US$49 million to US$69 million. The infrastructure, which includes Terminals & Towing, and Logistics & Services, excluding freight forwarding, recorded revenues of US$2.1 billion, down from US$2.3 billion in the same period last year linked to a decrease in revenue caused by COVID-19.

The company’s expectation is that volumes in the second quarter will decrease in all businesses, possibly by 20 to 25%. “2020 is a challenging year, but as we proactively respond to lower demand and show progress in our transformation and financial performance, we are strongly positioned to weather the storm,” says Søren Skou. Maersk believes that global demand for container shipping is expected to decline in 2020 due to the new coronavirus.  Previously it had grown by between 1-3%.

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