Maersk raises earnings expectation
Date: Tuesday, October 22, 2019
Source: Lloyd's List
Global trade is slowing and rates remain weak. But lower fuel costs and capacity management indicate better earnings this year for the world’s largest box line
MAERSK, the world’s largest container carrier, has revised up its earnings expectations for the year, despite slowing global demand and lower freight rates.
“Based on the financials for the third quarter and the updated outlook for freight rates, volumes and bunker fuel prices for the rest of the year, Mærsk upgrades its expectation for the 2019 result,” the company said in a statement.
The company now expects earnings before interest, taxes, depreciation and amortisation in the range of $5.4bn-$5.8bn, up from the previous ebitda expectation of about $5bn.
“Maersk has in the third quarter, despite slower global demand growth and lower freight rates, recognised better than expected performance in Ocean driven by strong reliability and capacity management combined with lower fuel prices and continued margin improvements in Terminal & Towage, which has resulted in stronger than expected financial performance in the quarter,” it said.
Revenue in the third quarter was $10.1bn and ebitda $1.7bn. For the first nine months of the year, revenue stood at $29.2bn and ebitda at $4.2bn.
The company will present a revised full-year outlook in its third-quarter results report on November 15.