Maersk revises upwards 2019 earnings forecast with strong sea freight volumes
MAERSK has announced that earnings before interest, taxes, depreciation and amortization (EBITDA) for the whole of this year will be between US$5
MAERSK has announced that earnings before interest, taxes, depreciation and amortization (EBITDA) for the whole of this year will be between US$5.4 billion and $5.8 billion, up from its earlier forecast of $5 billion.
The Danish shipping giant raised its forecast due to the better-than-expected performance in its ocean freight segment. In spite of lower freight rates and weaker global demand growth, the ocean freight's results were 'driven by strong reliability and capacity management combined with lower fuel prices.'
Maersk said third-quarter revenue stood at $10.05 billion, down slightly from a year earlier. EBITDA for the third quarter was $1.66 billion, up 45 per cent year on year, reported American Shipper.
Revenue for the first nine months of 2019 amounted to $29.22 billion, up 1.3 per cent from a year earlier, with EBITDA of $4.25 billion, up 57 per cent.
This third quarter saw some of the best months for container shipping in terms of volumes thanks to front-loading ahead of a fresh round of US tariffs on Chinese goods. July and August import volumes of 1.96 million and 1.97 million TEU, respectively, were the best months for North America this year, according to the US National Retail Federation.
However, spot shipping rates remain stuck at multi-year lows due to overcapacity on major trade lanes and the slowdown in US-China trade volumes.