The world’s largest container line, A.P. Moller-Maersk A/S, re-established its full-year guidance, with a higher level than it formerly signified, after keeping the business open throughout the global pandemic. The company shares had hiked as much as 7.4% on trading opening, Wednesday August 19, in Copenhagen. The company EBITDA in 2020 will be between $6-$7 billion, the spokesperson said. Maersk had expected profit to reach an approximate $5.5 billion before suspending the previous guidance. Survey by analysts showing an average prediction of $5.85 billion.
Chief Executive Officer Soren Skou shared a statement, saying the company would continue to serve the global transportation customer in need and supply chains throughout very difficult circumstances this quarter, and the company never closed for business. Maersk slashed its operating cost by 16% in Q2, together with the freight rates rise by 4.5%, resulting in a counterbalance of more than 16% drop in volumes.
Managing director at Clarksons Platou in Oslo, Frode Morkedal, said Maersk’s profit indicating the container shipping market is able to grow stronger in the face of the global pandemic crisis, contrary to the scenario feared before. Freight rates expected to be performing better in Q3, along with liner companies' moves in adding trade-lanes back ship capacity, a move indicating stronger demand recovery.
Skou also warned that the company’s current outlook doesn’t include the possibility of a second phase of lockdowns, and significant uncertainties will remain on demand growth due to the pandemic, as global supply grows and prices slump.
The growth of containers in global demand is still predicted to contract for the remaining of 2020 due to the coronavirus. For Q3 2020 the volume is predicted to recover progressively with a forecast in contraction around mid-single digit. Maersk, the company transporting approximately 15% of all the seaborne freight in the world, reported an EBITDA for Q2 2020 of $1.7 billion, an amount close to the highest estimation from the analysts. On June 17, the company releases a statement that the Q2 figures was developing better than initial estimation, while the EBITDA was expected to be “a little” above $1.5 billion.
