The outlook and guidance for 2020 is subject to significant uncertainties related to the pandemic
In Q2-2020, AP Moller-Maersk improved profitability across all businesses through agile capacity deployment, cost mitigation initiatives and adaption to changed customer needs. The earnings improvement was achieved despite the sharp drop in global volumes following the Covid-19 crisis, the company said in a press statement.
“As expected, the second quarter was materially impacted by Covid-19 and our focus remained on protecting our employees from the virus, serving our customers by keeping our global network of ships sailing and our ports, warehouses and inland transportation networks operating,” affirmed Søren Skou, CEO, AP Moller–Maersk.
Earnings before interest, tax, depreciation and amortization (EBITDA) improved to US$ 1.7bn. The EBITDA margin increased from 14.1% in Q2-2019 to 18.9% this corresponding quarter.
Revenue decreased by 6.5% to USD 9bn, driven by a volume decrease of 16% in Ocean and 14% in gateway terminals. In Ocean, the lower volumes were partly offset by agile capacity deployment of the global network leading to lower costs, together with lower fuel prices and higher freight rates.
In Logistics and Services, profitability increased through cost measures, favorable airfreight contribution and the integration of Performance Team, while Terminals & Towage showed their resilience by compensating lower volumes through cost measures.
The outlook and guidance for 2020 is subject to significant uncertainties related to the pandemic and does not take into consideration a material second lockdown phase. The guidance is also subject to uncertainties related to freight rates, bunker prices and other external factors.
