World’s largest shipping firm reports faster-than-expected third-quarter rebound
November 18, 2020 @ 11:19 +03:00
Maersk, the world’s largest container shipping firm, matched third-quarter profit expectations on Wednesday amid a stronger-than-expected pickup in demand. The Danish company, seen as a bellwether for global trade, reported a 39% quarterly increase in earnings before tax, depreciation and amortization to $2.3 billion, with $1.5 billion in free cash flow.
Revenue fell by 1.4% on the year, less than the company had expected, with declines in the company’s Ocean and Gateway Terminals operations “partially offset by a revenue increase in Logistics & Services of 11% due to acquisitions,” the earnings report noted.
Despite being negatively impacted by a “sharp drop in volumes” in the previous quarter, the company had upped its full-year guidance ahead of an anticipated spike in demand in the third quarter, as measures to contain the coronavirus pandemic were eased around the world.
The Board has also opted to issue a new share buyback program worth 10 billion Danish krone ($1.59 billion), which will run for 15 months from December 2020.
World’s largest shipping firm reports faster-than-expected third-quarter rebound, CNBC, Nov 18