AP Moller – Maersk expects volumes across its businesses to drop by as much as 20-25% in the second quarter of 2020.
In the company’s first quarter 2020 financial results statement, Soren Skou, chief executive officer, commented: “Looking into Q2 2020, visibility remains low as a result of the COVID-19 pandemic. We continue to support our customers in keeping their supply chains running, however as global demand continues to be significantly affected, we expect volumes in Q2 to decrease across all businesses, possibly by as much as 20-25%.”
The company reported 4.7% drop in global container trade which was mainly due to the covid-19 pandemic that impacted both the supply chain and demand. Looking ahead the company said: “While the outlook is very uncertain, it is expected that container demand will decline in 2020 compared to 2019. At present, it is difficult to predict the timing and the shape of the recovery in global trade volumes with confidence, as it will be determined by the interplay between the path of the virus and government policies in relation to the economy. As a reference point, WTO projects global merchandised trade to decline by between 13-32% in 2020, and the IMF expects a decrease of 11% (goods and services) but with a significant downside risk.”
Nonethless, first quarter results showed revenue had increased marginally to $9.6bn, despite lower volumes across all segments, while profitability continued the positive development from 2019, with EBITDA improving by 23% to $ 1.5bn and the EBITDA margin increased by 3 percentage points to 15.9%.