A.P. Moller – Maersk reported strong results for 2020 both in terms of financial performance and in transforming the company.
Despite low volumes during most of 2020, profitability grew throughout the first nine months and ended the year with record Q4 results in the Logistics and Terminals division, while the Ocean division delivered an exceptional quarter driven by the increased volumes and current, temporary supply chain disruptions.
Søren Skou, CEO of A.P. Moller – Maersk, commented: “2020 will forever be remembered for the COVID-19 pandemic that negatively impacted our lives, jobs, businesses and the global economy. I am proud that we have accelerated our transformation and delivered earnings growth during every quarter of 2020, despite very different market conditions, beginning with negative COVID-19 impact in the first half to a rebound in Q4,”
The company grew underlying earnings before interest, tax, depreciation and amortisation (EBITDA) 44 pct. to USD 8.2bn and revenue grew to USD 39.7bn in 2020 compared to USD 38.9bn last year. While the demand surge in the second half of year created supply chain bottlenecks, including vessel and container shortages, and led to higher rates that contributed approximately USD 1.5bn to results, Ocean further improved its intrinsic performance by focusing on costs, agile capacity management and launching new digital offerings.
Logistics & Services grew to USD 7bn, compared to USD 6.3bn last year, and EBITDA improved 110 pct. to USD 454m, supported by the acquisition of Performance Team as well as improved performance in intermodal, air freight forwarding and warehousing and distribution.
“Our customers want us to help them build more resilient supply chains and buy more end-to-end services. Consequently, our logistics business more than doubled earnings in 2020. We are today a profitable, growing logistics company with a broad offering of ocean and air transportation, port services and logistical capabilities, including warehousing, custom services and lead logistics,” added Søren Skou.
Gateway terminals saw a decrease in revenue of 3.9 pct. to USD 3.2bn in 2020 because of lower volumes due to impact from the pandemic. EBITDA increased by 8.3 pct. to USD 989m, reflecting an improved EBITDA margin to 31 pct. driven by higher revenue per move and cost reductions in several terminals.
Søren Skou concluded: “Financially, we left 2020 with a very strong balance sheet and little debt, which will allow us to continue to invest in our transformation and grow profitably. We are well equipped to deal with the ongoing market volatility and also to benefit from a world that hopefully starts to re-open.”