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.
Photo credit: A.P. Moller – Maersk
Published: 10 August, 2021
‘The JMs have failed to discharge their duties by blindly helping the Banks mount a false case against the Defendant,’ wrote defence lawyers representing former IPP Director Dr Goh Jian Hian in court statement.
Lead prosecutor Andreas Myllerup Laursen aims for a fine and a prison sentence in the so-called Syria case scheduled to commence in Odense, Denmark on 26 October, writes the Danish publication.
In a modern re-telling of the story of David versus Goliath, local bunker barge owners/charterers successfully resisted claims brought in the Singapore courts by Phillips 66 for misdelivery of bunkers.
Bunker barge owners and operators; traders and suppliers; banks, including players in other countries, will have to re-examine respective operations, advises Helmsman Associate Director Jonathan Tan.
Vopak BL was a non-essential document with no contractual force and had no effect as a contract of carriage or as a document of title, states written Judgement issued by Singapore Court of Appeal.
Dwivedi Vivek Kumar ended his tenure as Global Head – Bitumen & Shipping & Regional Head – APAC at GP Global APAC on 10 November 2020 due to internal structuring of the GP Global Group.