Supply Chain Council of European Union | Scceu.org
Freight

Maersk Improves on Q3 2020 Profits Despite Lower Revenues

During the third quarter A.P. Moller – Maersk improved profitability and grew earnings before interest, tax, depreciation and amortisation (EBITDA) 39% to $2.3 billion with revenue decreasing 1.4% $9.9 billion.

The performance increase was based on a stringent costs control, agile capacity management, strong focus on customer offerings with further traction in uptake of digital services, and some benefit from a sequential demand recovery compared to the second quarter.

Søren Skou, CEO of A.P. Moller Maersk said: “Despite COVID-19 negatively affecting activities in most of our businesses, our disciplined execution of the strategy led to solid earnings and cash flow growth in Q3.

“At the same time, we managed to further integrate and simplify the organisation in Ocean & Logistics, we closed the acquisition of KGH Customs Services and continued the integration of Performance Team, supporting our strong financial performance in Logistics & Services.”

Maersk and COVAXX Partner to Supply COVID-19 Vaccines Globally

The main performance driver this quarter was Ocean which, despite decreasing volumes of 3.6% improved profitability by $511 million to $1.8 billion, reaching an EBITDA margin of 25.4% on the back of a continued agile capacity deployment, lower costs and a temporary spike in rates.

The free cash flow generation of $3 billion in the first nine months of 2020, allowed the company to return cash to shareholders, finance acquisitions and reduce debt with net interest-bearing debt decreasing further to $10.8 billion by the end of Q3 compared to $11.7 billion by the end of 2019.

Related posts

Impact of Covid-19 Global ISO Dry Freight Container Market (2020 To 2027)

scceu

U.S. retailers face $700 million hit as virus disrupts ocean shipping | News

scceu

Cementing their position: Mayur Resources’ big plans for Papua New Guinea

scceu

Leave a Comment