Maersk raises annual forecast

A.P. Møller – Mærsk (APMM) has revised its full-year guidance for 2021 with an underlying EBITDA now expected in the range of US$22-23 billion and underlying EBIT expected in the range of US$18-19 billion, while previous expected EBITDA and EBIT were in the range of US$18-19.5 billion and US$14-15.5 billion, respectively.

“Given the persistent congestions and bottlenecks in the supply chains, APMM now expects the second half-year 2021 to be stronger than previously anticipated, both Q3 and the full year 2021,” said the Danish carrier.

APMM now expects for Q3 2021 an underlying EBITDA close to US$ 7 billion and an underlying EBIT close to US6 billion.

The strong result is driven by the continuation of the exceptional market situation within Ocean, which has led to further increases in both long- and short-term container freight rates, according to the company.

Meanwhile, the free cash flow (FCF) for the full-year 2021 is now expected to be minimum US$14.5 billion, increased by US$3 billion compared to the previous expectation, while the cumulative capital expenditure (CAPEX) guidance for 2021-22 is unchanged at approximately US$7 billion.

“The current guidance is still subject to uncertainty due to a higher than normal volatility given the temporary nature of both the demand patterns and disruptions in the supply chains,” noted APMM, which will publish its third-quarter interim result on 2 November.