Maersk Q2 2020 results

Maersk, the world’s largest container shipping company, beat second-quarter profit forecasts on Wednesday and said it expected demand to pick up in the third quarter, but warned of a “significant drop” during the year.

Although it was negatively impacted by a “sharp drop in volumes” in the second quarter, with revenues down 6.5% from the same period last year as the global economy was in focus dead by the coronavirus pandemic, Maersk raised its forecast for the full year on Wednesday.

The Danish company announced a 25% increase in its EBITDA (earnings before interest, taxes, depreciation and amortization) in the second quarter to $ 1.7 billion, exceeding the $ 1.575 expected by analysts in a Refinitiv poll.

Maersk, often seen as an indicator of global trade, now projects 2020 EBITDA of between $ 6 billion and $ 7 billion, up from the original forecast of $ 5.5 billion.

The drop in revenue was attributed to a 16% drop in the company’s Ocean division and a 14% drop in gateway terminals, which Maersk said was “partially offset by an increase in freight rates and an increase in freight rates. increase in income by moving to terminals “.

“Due to lockdowns, closed borders and travel restrictions around the world, we have encountered significant issues in relieving our sailors when their contracts expire, a persistent issue that is of great concern to us and that we are proactively addressing. “said CEO Søren Skou said in the results report.

Return on Invested Capital (CROIC) rose 3.6 percentage points to 12.5%, and Skou said the earnings report and balance sheet indicated Maesk was “well positioned to come out financially and strategically stronger. of the crisis “.