A.P. Moller – Maersk (APMM) has adjusted its earning expectations for 2018. As highlighted in the APPM’s financial report for Q1 2018 the expectation for the 2018 result was subject to increased uncertainties impacting container freight rates, bunker prices and rate of exchange due to geopolitical risks, trade tensions and other factors.
Based on the outlook for freight rates for the rest of the year and continued high bunker fuel prices, APMM’s new expectation for earnings before interests, tax, depreciations and amortisations (EBITDA) is in the range of $3.5-$4.2bn and a positive underlying profit. The previous expectation for EBITDA was in the range of $4.0-5.0bn and an underlying profit above 2017 ($356m). The remaining part of the guidance is unchanged.
Revenue was $9.5bn for APMM in Q2 2018 and EBITDA was $0.9bn. For the first half year, revenue was $18.8bn and EBITDA $1.6bn. EBITDA in Ocean was $0.7bn for Q2 2018 reflecting improved unit cost, which both in total and at fixed bunker was down by more than 5% compared to Q1 2018. However, profitability was negatively impacted by an average bunker price increase of 28% compared to the same period last year while average freight rates were 1.2% lower.
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