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Finally, some good news. Maersk says 2nd qtr demand beats initial expectations

PortandTerminal.com, June 17, 2020

Maersk expects a much lower impact from COVID-19 on its volumes in the second quarter than previously anticipated, the company informs in an update.

COPENHAGEN – A.P. Moller-Maersk said today in a release that market demand was developing “more favourably than originally expected” in the second quarter, sending its shares up sharply by 7%.

Maersk, which handles one in every five containers shipped by sea worldwide, now expects volumes to fall 15-18% in the second quarter compared to a previous forecast for a 20-25% drop.

Søren Skou, CEO of A.P. Moller - Maersk
Søren Skou, CEO of A.P. Moller – Maersk

While uncertainty persists because of the pandemic and low visibility on the recovery path, we benefit from a more resilient Ocean-business.”  Søren Skou

The CEO of A.P. Moller – Maersk, Søren Skou, said: “Despite the expected 15-18% drop in demand due to the Covid-19 virus in the second quarter, I am happy to announce that we expect to achieve slightly higher operating profits than in the first quarter. . This also means that we expect an operating result higher than that of the same quarter last year. ”

The company said that it expects second-quarter earnings before interest tax, depreciation and amortisation (EBITDA) and before restructuring and integration “slightly above” the $1.5 billion (£1.2 billion) achieved in the first quarter.

Maersk will publish full second-quarter results on Aug 19.

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