Daily Management Review

Maersk profit plunges to $17 mln in January-September


Net profit of Danish company A. P. Moller-Maersk A/S (Maersk) totalled $17 mln in January-September against $3.15 bln in January-September 2018, according to the company's financial statements.

Bernard Spragg via flickr
Bernard Spragg via flickr
Revenue increased by 0.6% to $29.222bn, EBITDA - by 1.6% to $4.249bn. Including the net profit in the III quarter increased by 31% in annual terms to $520 mln. Revenue declined by 1% to $10.055 bln. EBITDA increased by 1.5 times to $1.656 bln.

The company expects EBITDA to be $5.4-5.8 bln in 2019 compared to the previous forecast of $5 bln.

The Ocean Container Division's EBITDA amounted to $1.268 bln (+12.6% year-on-year) in the third quarter.

Terminals & Towage's EBITDA increased 23% to $313 million, while Logistics & Services' EBITDA increased 34% to $94 million.

In the world there is an imbalance of demand and supply for linear transportations, the majority of operators bear losses, however continue to build a new fleet. The situation is aggravated by the introduction of restrictions on the content of sulfur in marine fuel since 2020, which will lead to an increase in fuel surcharges.

Founded in 1904 in Svenborg, Denmark, Maersk operates in 130 countries and employs 88,000 people.

source: nasdaq.com