Maersk on the defensive
Maersk reported that its profitability was in line with the latest guidance for 2018. Ebitda amounted to USD 3.8 billion, 8% more than in 2017. The improvement in operating earnings was driven by higher freight rates, efficiencies gained from the integration of continuing operations, and synergies from the acquisition of Hamburg Süd.
However, the Danish carrier conceded that "margins in continuing operations were challenged and ebitda was lower than initially expected at the beginning of the year." The carrier’s lower earnings were attributed to bunker fuel price increases which were not fully recovered by higher freight rates.
"Profitability needs to improve,” said CEO Søren Skou. Net interest-bearing debt was reduced from USD 14.8 billion to USD 8.7 billion over 2018, and the company remains investment grade rated by the rating agencies. (kd)