A.P. Moller-Maersk (Maersk) has said its revenue for the second quarter of 2020 fell by 6.5% due to the effects of the COVID-19 pandemic.
In a statement, the carrier said it had “improved profitability” across all businesses through “agile capacity deployment, cost mitigation initiatives and adaption to changed customer needs”.
The fall in revenue was driven by a volume decrease of 16% in Ocean and 14% in gateway terminals.
In Ocean, the lower volumes were partly offset by the aforementioned agile capacity deployment of the global network leading to lower costs, together with lower fuel prices and higher freight rates.
In Logistics and Services, profitability increased through cost measures, favorable airfreight contribution and the integration of Performance Team, while Terminals & Towage showed their resilience by compensating lower volumes through cost measures.
Earnings before interest, tax, depreciation and amortisation (EBITDA) improved to $1.7 billion, which is higher than the initial expectations in the trading update from June of an EBITDA slightly above $1.5 billion.
“As expected,” said Søren Skou, CEO of Maersk, “the second quarter was materially impacted by COVID-19 and our focus remained on protecting our employees from the virus, serving our customers by keeping our global network of ships sailing and our ports, warehouses and inland transportation networks operating, and helping the societies we are part of fight the virus.
“I am pleased that we despite the headwinds, continued our track record of improving earnings and free cash flow,” Skou continued.
“Our operating earnings improved by 25%, marking the eighth consecutive quarter with year-on-year improvements, driven by strong cost performance across all our businesses, lower fuel prices and higher freight rates in Ocean and increased profitability in Logistics & Services.”
“With a strong result and a strong balance sheet we are well positioned to financially and strategically come out stronger of the crisis.”
The gradual resumption of operations across the world has led Maersk to also reinstate its full-year guidance, which it suspended in March.
It now expects EBITDA to be between $6 billion and $7 billion, before restructuring and integration costs but insisted this figure is still subject to uncertainty around lockdown measures and freight rates.
