Based on the market development, combined with cost measures across the organisation and significant blanked sailings in Ocean, Maersk expects an EBITDA before restructuring and integration costs for Q2 2020 slightly above the level for Q1 2020 ($1.5bn).
With the current trading, the market demand in the second quarter of 2020 is developing more favourable than originally expected with volumes downfall for Maersk now anticipated to be in the range of -15% to -18% for Q2 2020, compared to the initial guidance of -20% to -25%. Maersk will publish its Q2 2020 interim results on Wednesday, August 19.
However, given the uncertainty of demand recovery in the second half of 2020 as economies are still impacted by COVID-19, the full-year guidance on earnings remains suspended.
“Despite an expected 15-18% drop in demand due to Covid-19 during the second quarter, I am pleased that we expect to deliver operating earnings slightly above our operating earnings in the first quarter. This also means we expect operating earnings to be higher than they were in the same quarter last year,” said Maersk CEO, Søren Skou.
Revenues for Q1 2020 edged-up by 0.3% year-on-year to US$9.6bn. While EBITDA jumped by 23% to $1.5bn, despite 5% year-on-year decrease in volumes and sharply increasing fuel cost as a result of the switch to low Sulphur fuel on January 1, 2020.
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