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Maersk lowers profit forecast amid increasing uncertainties

A.P. Møller – Mærsk A/S has downgraded its
profit guidance for 2018 amid growing uncertainties on the market impacting
container freight rates including geopolitical risks, high bunker prices and
trade tensions.

a result, Maersk forecasts that its EBITDA will be in the range of USD
3.5-4.2 billion and that the group will post a positive underlying profit
for 2018.
previous expectation for EBITDA was in the range of USD 4.0-5.0bn and
an underlying profit above USD 356 million, as reported in 2017.
remaining part of the guidance is unchanged.
”We delivered good progress in Q2
on revenue, volumes and unit cost across our business, and results improved
from a weak Q1. Spot freight rates have restored after a significant drop in
Q2, and volumes are growing in line with market. However, we continue to
encounter very high bunker prices, which we have not been able to get fully
compensated for in freight rates, leading to an adjustment in our expectations
for the full-year 2018,”
 Maersk’s CEO Søren Skou said.
transport and logistics major said that the group’s revenue was USD 9.5
billion in the second quarter of 2018 and EBITDA stood at USD 0.9 billion.
For the first half of the year, the revenue came at USD 18.8 billion and
the group’s EBITDA reached USD 1.6 billion.
for the second quarter in Maersk’s Ocean division came at USD 0.7 billion,
which the conglomerate ascribed to improved unit cost. As disclosed, the cost
was down both in total and at fixed bunker by more than 5 percent compared to
the first quarter of the year.
Maersk said that its profitability was negatively impacted by an average bunker
price increase of 28 pct compared to the same period last year while average
freight rates were 1.2 pct lower.
is the second quarterly report from the business conglomerate in a new
financial reporting structure. The structure features four new business
segments Ocean, Logistics & Services, Terminals & Towage and
Manufacturing & Others, which are aligned with the strategic focus on growing
the non-ocean part of the business disproportionally to the ocean.
World Maritime News

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