A.P. Moeller-Maersk (Maersk)’s earnings before interest, tax, depreciation and amortization (EBITDA) improved 14% to US$1.7 billion in the third quarter of 2019 as the carrier performed well despite a global slowdown in container demand.
In its Q3 figures, Maersk said its revenue decreased 0.9% to $10.1 billion and its operating cash flow increased by 25% to £1.7 billion.
Soren Skou, Maersk’s CEO and acting COO following the departure of Soren Toft, said: “While the global container demand, as expected, was lower in Q3 due to weaker growth in the global economy, A.P. Moller – Maersk continued to improve the operating results.”
Exclusive Paper: Shaping or being shaped? The potential white labeling of “Uber Port”
Skou went on to say that Maersk’s solid performance was largely down to its Ocean segment, which improved by 13% (EBITDA). This the carrier said in a statement, reflects its focus on profitability through capacity management and operational performance.
This meant it was able to mitigate lower freight rates and relatively small volume growth in Q3 of 2.1%. Ocean’s revenue was $7.3 billion, which is the same as Q3 2018.
Its Terminals and Towage EBITDA also increased, this time by $313 million, as did its revenue, which jumped by 5.8%. In gateway terminals, the increase in EBITDA of 33% was driven greater volume growth of 9.2%.
Logistics and Services progressed with a gross profit of 13% following increased activities in intermodal and warehousing and distribution. However, this was partly offset by a drop in revenue in air and sea freight forwarding.
Maersk expects EBITDA for 2019 to be in the range of $5.4 to 5.8 billion, up from the previously communicated estimation of $5 billion.