Danish shipping major A.P. Møller – Mærsk made good progress on its transformation in the first quarter of 2019 as its increased earnings and strengthened its balance sheet.
Maersk closed the first quarter of 2019 with a 33% increase in earnings before interest, tax, depreciation and amortization (EBITDA), which reached USD 1.2 billion in the period, while revenue grew by 2.5% to USD 9.5 billion compared to the first quarter of 2018.
The company’s underlying loss from continuing operations stood at USD 69 million, shrinking from a loss of USD 329 million reported in the same period a year earlier.
Operating cash flow improved to USD 1.5 billion and free cash flow was USD 3.5 billion, including sale of shares in Total S.A.
“We had a good start to 2019,” Søren Skou, CEO of A.P. Moller – Maersk, said, adding that the company has significantly strengthened its balance sheet.
Profitability in the company’s Ocean sector increased. EBITDA grew 42% to USD 927 million compared to same period last year, mainly driven by a 3.9% increase in average loaded freight rates and an improvement in total operating cost of 2.8%. Revenue increased to USD 6.9 billion despite lower volumes which declined 2.2%, impacted by the frontloading seen on the Pacific trades in the fourth quarter of 2018 and weak demand on Latin America and Oceania trades.
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