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Strong quarterly performance was mainly driven by an ‘exceptional market situation’ that saw a strong rebound in demand, bottlenecks in the supply chains, and equipment shortage
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Volumes increased by 15% and average freight rates improved 59% in the second quarter compared to the previous year
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Earnings in the third quarter are expected to exceed those in the second quarter
A.P. Moller-Maersk has revised upward its earnings outlook for 2021 after a strong performance in the second quarter of the year brought about by soaring freight rates and higher volumes.
In a release, Maersk, the world’s largest container line, said it posted an unaudited revenue of US$14.2 billion, an underlying EBITDA of $5.1 billion and an underlying EBIT of $4.1 billion for the second quarter of 2021.
“The strong quarterly performance is mainly driven by the continuation of the exceptional market situation with strong rebound in demand causing bottlenecks in the supply chains and equipment shortage.”
Volumes increased by 15% and average freight rates improved 59% in the second quarter compared to the previous year, it added.
With the strong second quarter result and expecting the exceptional market situation to continue at least until yearend, Maersk has revised upwards the full-year guidance for 2021, with an underlying EBITDA now expected in the range of $18 billion to $19.5 billion as against the previous guidance of between $13 billion and $15 billion, and underlying EBIT expected in the range of $14 billion to $15.5 billion from the previous $9 to $11 billion.
It also said the outlook for global market demand growth for the full-year 2021 has been revised upward to 6% to 8% from previously 5% to 7%, primarily still driven by the export volumes out of China to the US.
Earnings in the third quarter are expected to exceed the level for the second quarter of 2021, Maersk added. However, it said trading conditions for the quarters ahead “are still subject to a higher than normal volatility due to the temporary nature of current demand patterns, disruptions in the supply chains and equipment shortages.”
Photo by Andrey Sharpilo on Unsplash
