SHIPPING giant A.P. Møller – Mærsk has reported an unaudited revenue of US$12.4bn and an underlying EBITDA of US$4bn and an underlying EBIT of US$ 3.1bn for Q1 2021.
“The continued strong performance is mainly driven by the continuation of the exceptional market situation with surging demand leading to bottlenecks in the supply chain and equipment (containers) shortage,” the company said in a statement.
Mærsk’s ocean volumes increased by 5.7% and average freight rates improved 35% in Q1 2021 compared to previous year.
“Consequently, given the result in Q1 2021 and the exceptional market situation now expected to continue well into the fourth quarter of 2021, the full year guidance for 2021 has been revised upwards with an underlying EBITDA now expected in the range of US$13-15bn (previously US$8.5-10.5bn) and underlying EBIT expected in the range of US$9-11bn (previously US$4.3-6.3bn),” the company said.
The free cash flow for the full-year 2021 is now expected to be minimum US$7bn (previously above US$3.5bn), while the cumulative capex guidance for 2021-22 has been raised to around US$7bn (previously $4.5-5.5bn) on back of higher expected capex to provide additional containers to relieve the current bottlenecks and improve service reliability in ocean and the organic growth in logistics and services.
“The outlook for the global market demand growth for the full-year 2021 has been revised up to 5-7% from previously 3-5%, primarily driven by the export volumes out of China to the United States,” the company said.
Trading conditions for the quarters ahead remain subject to a higher than normal volatility due to potential changes in current demand patterns and the current disruptions in the supply chains and equipment shortages impacting the short-term container freight rates.
Mærsk will publish its Q1 interim result on 5 May, 2021.