Maersk’s EBITDA grew by 17% in Q2 2019


Maersk has reported Q2 2019 financial results. Revenue grew by only 1% year-on-year, to $9.6bn. However, EBITDA grew by 17% to $1.4bn from $1.2bn in Q2 2018. This was primarily due to an EBITDA increase in the Ocean segment driven by higher freight rates and volumes as well as strong operational efficiency. The impact on EBITDA from development in foreign exchange rates was insignificant.

Ocean EBITDA increased by 25% year-on-year, to $1.1bn. Revenue increased by 3% to $7.2bn on the back of a volume increase of 1.4% along with an increase in the average loaded freight rate of 1.5% to $1,868 per FFE (Forty Foot container Equivalent unit).

Logistics & Services reported revenue of $1.5bn, no change compared to Q2 2018. Revenue for supply chain management increased while sea and air freight forwarding revenue declined. This was partly due to lower volumes and margins in sea and air freight forwarding. EBITDA increased to $61m compared to $52m in Q2 2018.

Søren Skou, CEO of A.P. Moller – Maersk said: “Growth in revenue and gross profit in Logistics & Services still need to improve as we continue to build capabilities within logistics and services.”

Revenue in Terminals & Towage grew 13% to $957m compared to Q2 last year. In gateway terminals, volume in Q2 grew by 8.5% compared to last year, leading to higher utilization. EBITDA increased by 11%, partly offset by one-off items. Manufacturing & Others’ revenue decreased by 34% year-on-year, to $459m, mainly due to Maersk Container Industry’s decision in Q1 to exit the dry container business to focus fully on growing the cold chain business, and the divestment of the bulk activities. EBITDA increased to $36m.

While EBITDA for the first half year improved by $500m to $2.6bn, A.P. Moller – Maersk reiterates it’s full-year guidance for 2019 of an EBITDA of around $5.0bn including effects from IFRS 16. 

“We reaffirm our guidance for 2019, while the macro environment continues to be subject to considerable uncertainties,” said Skou. 

Source: Maersk