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Maersk net profit significantly up in Q2 2021; amid higher costs, consumption of bunker fuel

10 Aug 2021

Integrated container logistics company A.P. Moller – Maersk recorded significant growth in net profit for the second quarter of 2021 (Q2 2021) due to gains from its Ocean business.

The company posted total net profit of USD 3.7 billion in Q2 2021 from its Ocean, Logistics & Services, and Gateway Terminals businesses, a jump from net profit of USD 519 million in Q2 2020.

Total revenue across its three business segments in Q2 2021 was USD 14.2 billion, an increase from revenue of USD 9.0 billion in Q2 2020.

Specifically, it’s Ocean business segment experienced revenue growth to USD 11.1 billion in Q2 2021 from USD 6.6 billion in the year before.

The growth in Q2 2021 came from a 15% rebound in volumes and an increase in average freight rates of 59%, as both long-terms contracts rates with key clients increased and short-term contracts were still impacted by congestions and bottlenecks, according to Maersk.

Maersk’s bunker costs in Q2 2021 increased to USD 1.295 billion, from USD 766 million in Q1 2020; its average bunker price in Q2 2021 was USD 475 per metric tonne (pmt), compared to USD 328 pmt during the similar period last year. The development was driven by recovery of global bunker prices following collapse during initial COVID-19 outbreak end Q1 2020.

The company consumed 2,725,000 metric tonnes (mt) of marine fuel in Q2 2021, 17% higher than 2,333,000 mt of bunker fuel during Q2 2020 driven by an increase in deployed capacity and increased speeding on all trades in response to low schedule reliability. Bunker efficiency decreased by 0.7% to 40.99 g/TEU*NM (40.69 g/TEU*NM).

“The outlook for Q3 is strong and we expect that the current momentum in Ocean will continue into Q4, also benefitting our Terminals business. Logistics & Services will continue its strong growth pattern for the rest of the year,” said Søren Skou, CEO A.P. Moller – Maersk.

“As communicated on 2 August, we have upgraded our guidance for 2021 to an underlying EBITDA of USD 18-19.5bn, an EBIT of 14-15.5bn and a free cash flow expected to be minimum USD 11.5bn.”

The full Q2 2021 Interim Report of A.P. Moller – Maersk can be obtained from its website here.

Related: Maersk bunker costs down 22%, fuel consumption up 8.3% on year in Q1 2021

 

Photo credit: A.P. Moller – Maersk
Published: 10 August, 2021

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