Maersk ups 2021 profit expectations, reports Q2 record results
Danish shipping and logistics giant A.P. Moller – Maersk has upgraded its 2021 full-year guidance reporting strong performance in Q2 2021.
The company reported continues to report strong quarterly results with second-quarter revenue in 2021 going up to $14.2 billion, an underlying EBITDA of $5.1 billion and an underlying EBIT of $4.1 billion.
The strong quarterly performance is mainly driven by the continuation of the exceptional market situation with strong rebound in demand causing bottlenecks in the supply chains and equipment shortage, Maersk noted in a trading update.
Container volumes rose by 15 percent year-on-year during the quarter and average freight rates improved 59% in Q2 2021 compared to the previous year.
The outlook for global market demand growth for the year has been revised up to 6-8 percent (about one percentage point), still mainly driven by American demand for Chinese goods.
Accordingly, Maersk has raised its profit guidance upwards, it now expects full-year EBITDA in the range of $18-19.5 billion (about $5 billion more than previous guidance of $13-15 billion) and underlying EBIT expected in the range of $14-15.5 billion (previously $9-11 billion).
Looking ahead demand is expected to continue to grow in the second half of the year, while the company eyes its third-quarter 2021 earnings to exceed the second quarter.
Trading conditions for the quarters ahead are, however, still subject to a higher than normal volatility due to the temporary nature of current demand patterns, disruptions in the supply chains and equipment shortages, the company concluded.