rss icon Subscribe
desktop mobile

Maersk Cuts 2018 Guidance, Eyes Market Recovery

Photo courtesy of Maersk

Posted by Michelle Howard

Danish shipping company A.P. Moller-Maersk slashed its 2018 earnings forecast on Tuesday due to weak second-quarter freight rates and higher prices for bunker fuel, although the downgrade was smaller than feared, analysts said.

The world's biggest container shipper also said spot freight rates have restored after a significant drop in the second quarter, and that its volumes are growing in line with the market.

Following the unexpected announcement, Maersk's share price initially fell more than 5 percent but shortly after rose to trade 4.6 percent higher for the day at 1409 GMT.

The company now expects earnings before interests, tax, depreciations and amortisation (EBITDA) of between $3.5 billion and $4.2 billion, down from $4.0 billion-$5.0 billion seen previously.

A Thomson Reuters I/B/E/S SmartEstimate forecast showed however that analysts had already slashed expectations for Maersk's earnings to $3.69 billion ahead of the warning.

"Some people just sell immediately when they see a profit warning issued. But the market may have feared an even more dramatic profit warning," Sydbank analyst Morten Imsgard said.

Maersk said it still expects a positive underlying profit, while it previously expected an underlying profit above the $356 million it reached last year


(Reporting by Teis Jensen, additional reporting by Emil Nielson, editing by Terje Solsvik)

Aug 7, 2018

 

Logistics

White House Condemns Turkey's Tariffs on US Imports

© sezer66 / Adobe Stock

The White House on Wednesday condemned Turkey's doubling of tariffs on U.S. cars, alcohol and

Port of LA Reports Busiest July Ever

(Photo; Port of Los Angeles)

The Port of Los Angeles processed 833,568 Twenty-Foot Equivalent Units (TEUs) last month

Low Water Still Troubles River Shipping in Germany

© bilanol / Adobe Stock

Water levels on the Rhine and Danube in Germany remain low after a recent drought and freight

Fuels & Lubes

More Ships Adding Scrubbers ahead of 2020

© Stockninja / Adobe Stock

An increase in the number of ships adding cleaning systems to their smokestacks will mean vessels

Air Lubrication System Saves Fuel for Diamond Princess

Diamond Princess (Photo: Silverstream Technologies)

Silverstream Technologies said its Silverstream System air lubrication technology has been

Gas to Become World's Primary Energy Source by 2035

Image: DNV GL

Oil and gas will be crucial components of the world’s energy future, according to DNV GL’s

Maritime Apps