Maersk Lowers Profit Forecast amid market Uncertainties
Maersk Lowers Profit Forecast: A.P. Møller – Mærsk A/S has downgraded its profit guidance for 2018 amid growing uncertainties on the market impacting container freight rates including geopolitical risks, high bunker prices and trade tensions.
As a result, Maersk forecasts that its EBITDA will be in the range of USD 3.5-4.2 billion and that the group will post a positive underlying profit for 2018.
The previous expectation for EBITDA was in the range of USD 4.0-5.0bn and an underlying profit above USD 356 million, as reported in 2017.
Danish transport and logistics major said that the group’s revenue was USD 9.5 billion in the second quarter of 2018 and EBITDA stood at USD 0.9 billion. For the first half of the year, the revenue came at USD 18.8 billion and the group’s EBITDA reached USD 1.6 billion.
EBITDA for the second quarter in Maersk’s Ocean division came at USD 0.7 billion, which the conglomerate ascribed to improved unit cost. As disclosed, the cost was down both in total and at fixed bunker by more than 5 percent compared to the first quarter of the year.
However, Maersk said that its profitability was negatively impacted by an average bunker price increase of 28 pct compared to the same period last year while average freight rates were 1.2 pct lower.