In its financial report for the first quarter of 2018, Maersk adjusted its expectations for 2018. Namely, the shipping giant lowered its profit forecast, because of the increased uncertainties.
Namely, Maersk’s new expectation for earnings before interests, tax, depreciations and amortisations (EBITDA) is in the range of USD 3.5-4.2bn. The previous expectation was in the range of USD 4.0-5.0bn.
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The expectation for the 2018 result was lowered due to increased uncertainties impacting container freight rates, bunker prices and rate of exchange due to geopolitical risks, trade tensions and other factors.
Maerk’s CEO, Søren Skou stated:
We continue to encounter very high bunker prices, which we have not been able to get fully compensated for in freight rates, leading to an adjustment in our expectations for the full-year 2018.
In addition, revenue for in the second quarter for 2018 was USD 9.5bn and EBITDA was USD 0.9bn. For the first half-year revenue was USD 18.8bn and EBITDA USD 1.6bn.
EBITDA in Ocean was USD 0.7bn for Q2 2018 indicating improved unit cost, which both in total and at fixed bunker was down by more than 5% compared to the first quarter 2018.
However, profitability was negatively impacted by an average bunker price increase of 28% compared to the same period last year while average freight rates were 1.2% lower.