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First-quarter revenue soared to US$12.4 billion, while EBITDA was $4 billion and EBIT hit $3.1 billion
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Shipping volumes increased by 5.7% and average freight rates improved 35% in the first quarter of this year
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EBITDA for the whole of 2021 is now seen to range from $13 billion to $15 billion from the previous $8.5 billion to $10.5 billion
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EBIT guidance is now in the range of $9 billion to $11 billion from the previous $4.3 billion to $6.3 billion
Container logistics giant Maersk has sharply raised its full-year profit guidance in the wake of a strong performance in the first quarter of 2021 and on the back of expectations of continued strong global demand throughout the year.
In an update released April 26, the Danish ocean carrier said that based on preliminary figures, it made unaudited revenue of US$12.4 billion in the first quarter of 2021.
The underlying EBITDA for the same quarter is $4 billion and the underlying EBIT is $3.1 billion.
READ: Maersk EBITDA expands 44% despite low volumes
“The continued strong performance is mainly driven by the continuation of the exceptional market situation with surging demand leading to bottlenecks in the supply chain and equipment (containers) shortage,” the company said.
Shipping volumes increased by 5.7%, and average freight rates improved 35% in the first quarter of this year compared to the previous year.
As a result, Maersk has adjusted upward its guidance for the full year based on the first quarter’s result and “the exceptional market situation now expected to continue well into the fourth quarter of 2021.”
It said it now expects an underlying EBITDA for the whole of 2021 in the range of $13 billion to $15 billion from the previous $8.5 billion to $10.5 billion.
The underlying EBIT is expected to be in the range of $9 billion to $11 billion from the previous guidance of $4.3 billion to $6.3 billion.
The outlook for global market demand growth for full-year 2021 has been revised up to 5% to 7% from previously 3% to 5%, “primarily driven by the export volumes out of China to the US,” said the statement.
Last February, Maersk reported revenue of $39.7 billion for 2020, up 2.2% compared to 2019, while EBITDA last year ballooned 44% to $8.2 billion.
But Maersk in its update added that trading conditions for the quarters ahead “remain subject to a higher than normal volatility due to potential changes in current demand patterns and the current disruptions in the supply chains and equipment shortages impacting the short-term container freight rates.”
Full details of the first quarter interim result will be released in early May.
Image by Claudia Peters from Pixabay
