Skip to main content

Trading update for Q1 and suspension of 2020 full year guidance

Written by Customer Service on . Posted in Public Companies.

ANNOUNCEMENTA.P. Møller – Mærsk A/S – Trading update for Q1 and suspension of 2020 full year guidanceBased on preliminary figures, A.P. Møller – Mærsk A/S (APMM) expects EBITDA before restructuring and integration costs for Q1 to be around USD 1.4bn (USD 1.24bn) negatively impacted by weak volume development but mitigated by strong implementation of our IMO 2020 strategy, both in terms of cost reduction initiatives and fuel price recovery.  For 2020, APMM has previously guided an EBITDA of around USD 5.5 bn, before restructuring and integration costs. The global COVID-19 pandemic severely impacts the global transport market and supply chains. This is leading to material uncertainties and lack of visibility related to the global demand for container transport. While the global operations are running as normal, APMM has, as a consequence of the current uncertainties related to the outlook, decided to suspend the 2020 guidance on EBITDA pending more clarity on the market development and financial implications.The remaining part of the guidance for 2020 of volume growth in Ocean expected to be in line or slightly lower than the market growth, a high cash conversion ratio and accumulated CAPEX for 2020-21 of between USD 3-4bn is reiterated, but measures will be taken to reduce CAPEX for 2020.The ongoing share buy-back program as well as proposed dividends for 2019 will not be affected by the decision to suspend guidance.“During the first two and a half month of 2020 we have executed well on our IMO2020 strategy for how to manage the extra cost involved with the IMO mandated switch to low-sulphur fuel oil from January 1st. We have effectively mitigated a part of the extra cost through good procurement, blending and manufacturing fuel ourselves and we have implemented rate increases to recover the actual fuel price increase from customers. We consequently expect to deliver a Q1 2020 which is better than Q1 2019, despite declining volumes across our businesses, driven by the COVID-19 pandemic.Because of the current situation with high uncertainties related to global container demand due to the COVID-19 pandemic and the measures being taken by governments to contain the outbreak, we have chosen to suspend our 2020 full year guidance on earnings but will as soon as we have more clarity return with an outlook for 2020.  Ensuring the health and well-being of our employees and supporting our customer’s needs remain our number one priority” says Søren Skou, CEO A.P. Moller – Maersk.APMM will publish its Q1 result on 13 May 2020.Copenhagen, 20 March 2020Contact persons:
Head of Investor Relations, Stig Frederiksen, tel. +45 3363 3106
Head of External Relations, Signe Wagner, tel. +45 3363 1901Page 1 of 1AttachmentAnnouncement – Trading update for Q1 and suspension of 2020 full year guidance

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Important Notice for Investors:

The services and products offered by Goldalea Capital Ltd. are intended exclusively for professional market participants as defined by applicable laws and regulations. This typically includes institutional investors, qualified investors, and high-net-worth individuals who have sufficient knowledge, experience, resources, and independence to assess the risks of trading on their own.

No Investment Advice:

The information, analyses, and market data provided are for general information purposes only and do not constitute individual investment advice. They should not be construed as a basis for investment decisions and do not take into account the specific investment objectives, financial situation, or individual needs of any recipient.

High Risks:

Trading in financial instruments is associated with significant risks and may result in the complete loss of the invested capital. Goldalea Capital Ltd. accepts no liability for losses incurred as a result of the use of the information provided or the execution of transactions.

Sole Responsibility:

The decision to invest or not to invest is solely the responsibility of the investor. Investors should obtain comprehensive information about the risks involved before making any investment decision and, if necessary, seek independent advice.

No Guarantees:

Goldalea Capital Ltd. makes no warranties or representations as to the accuracy, completeness, or timeliness of the information provided. Markets are subject to constant change, and past performance is not a reliable indicator of future results.

Regional Restrictions:

The services offered by Goldalea Capital Ltd. may not be available to all persons or in all countries. It is the responsibility of the investor to ensure that they are authorized to use the services offered.

Please note: This disclaimer is for general information purposes only and does not replace individual legal or tax advice.