Shipping group A.P. Møller-Mærsk has reported second-quarter earnings above expectations, and adjusted its profit guidance for the full year upwards.
Earnings before interest, tax, depreciation and amortisation (EBITDA) fell to $2.91 billion (€2.66 billion) in the quarter from $10.3 billion (€9.41 billion) a year earlier, beating analysts' expectations of $2.41 billion (€2.20 billion) in a Refinitiv poll.
Second-Quarter Revenue
Revenues at the shipping giant fell 40% to $13.0 billion (€11.87 billion), however, which was driven by the 'normalisation' of the logistics industry following the COVID-19 peak, as well as lower rates compared to the second quarter of last year.
'The second-quarter result contributed to a strong first half of the year, where we responded to sharp changes in market conditions prompted by destocking and subdued growth environment following the pandemic fuelled years,' Maersk said in a statement.
The company narrowed its profit forecast for the year with underlying EBITDA expected between $9.5 billion (€8.68 billion) and $11 billion (€10.05 billion). It had previously predicted an underlying EBITDA of between $8 billion (€7.31 billion) and $11 billion (€10.05 billion).
Cost Containment
"Our decisive actions on cost containment together with our contract portfolio cushioned some of the effects of this market normalisation," commented Vincent Clerc, chief executive.
"Cost focus will continue to play a central role in dealing with a subdued market outlook that we expect to continue until end year. While we step this agenda further up, we are unwavering in our transformation and continue to invest in and deliver truly integrated logistics solutions to our customers and amplify their supply chain resilience for the uncertain times ahead.”
Additional reporting by ESM
