Despite COVID-19, A.P. Moller-Maersk reports strong results for 2nd quarter

Aug, 19, 2020 Posted by datamarnews

Week 202034

In the second quarter of 2020, A.P.Moller – Maersk improved profitability across all businesses. According to the company, this happened due to its agility to precipitate change according to customer needs, and its initiatives to reduce costs. The gains and improvements were achieved despite the sharp drop in global volumes resulting from the COVID-19 crisis.

“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 land transport networks operating, in addition to helping society in the fight against the virus “, says Søren Skou, CEO of AP Moller – Maersk.  He continued “I am pleased that, despite the headwinds, we continue our history of improving earnings and cash flow. Our operating profits increased 25%, marking the eighth consecutive quarter with year-on-year improvements, driven by strong performance in all of our businesses, lower fuel prices and higher freight rates in the ocean segment, and higher profitability in logistics and services. With a strong result and balance sheet, we are well-positioned to financially and strategically come out of the crisis stronger. ”

Earnings before interest, taxes, depreciation, and amortization (EBITDA) improved to US$1.7 billion, which is above initial expectations in the June trade update of EBITDA slightly above US$1.5 billion.  The EBITDA margin increased from 14.1% in the second quarter of last year to 18.9%. Despite this, revenue decreased 6.5% to US$9 billion, driven by a volume reduction of 16% in the ocean segment and 14% in the terminals segment.

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