Maersk increases its revenues 11.1% in the third quarter

Redacción Opportimes 18 noviembre, 2020

Maersk presented a year-on-year increase of 11.1% in its revenues for the third quarter of 2020, to 1.891 million dollars.

“Despite the fact that Covid-19 negatively affected activities in most of our businesses, our disciplined execution of the strategy generated solid earnings and cash flow growth in the third quarter.

“At the same time, we succeeded in further integrating and simplifying the organization at Ocean & Logistics, closing the acquisition of KGH Customs Services, and continuing the integration of Performance Team, supporting our strong financial performance in Logistics and Services,” said Søren Skou. CEO of Maersk.

The main driver of performance this quarter was Ocean which, despite a 3.6% decrease in volumes, improved profitability by $ 511 million to $ 1.8 billion, reaching an EBITDA margin of 25.4% due to an agile capacity deployment and continued, lower costs and a temporary increase in short-term freight rates due to a sudden increase in demand on some routes.

Maersk

According to the company, global container demand growth is expected to contract by 4-5 percent in 2020 due to Covid-19.

Organic volume growth in Ocean is now expected to be slightly below average market growth from previously online or slightly below market.

For 2020, Maersk expects the guidance on capital expenditures (CAPEX) to be $ 1.5 billion and with the expectation of high cash conversion (cash flow from operations versus EBITDA).