Ever Given Owners Make New Offer To Suez Canal Authority
By Yusri Mohamed (Reuters) The owners of a giant container ship that blocked the Suez Canal in March have made a new offer in a compensation dispute with the canal...
By Alastair Reed (Bloomberg) –A.P. Moller-Maersk A/S raised its guidance for a second time since October as the world’s biggest container shipping company enjoys stronger demand than feared amid the Covid crisis.
Copenhagen-based Maersk expects Ebitda before restructuring and integration costs this year to be in a range of $8 billion to $8.5 billion, it said in a statement on Tuesday. It had previously guided for profit by that measure of $7.5 billion to $8 billion.
The company transports about one-fifth of the world’s containers, giving it a unique view of the state of global trade. It reported preliminary third-quarter earnings in October, when it cited a “continued recovery in demand.”
In Tuesday’s announcement, Maersk said that “the trading conditions and the outlook remain subject to a higher than normal volatility given the disruptions caused or potentially being caused by Covid-19.”
The outlook for global trade and the world economy hangs in the balance as the pandemic cements its grip across the northern hemisphere. At the same time, scientists are moving closer than ever to developing a vaccine, potentially laying the foundation for an economic rebound in 2021.
Meanwhile, Maersk is trimming its organization to adapt to the challenges it faces. The company plans to take restructuring costs of around $100 million in the third quarter related to around 2,000 job cuts, as it reorganizes its ocean and logistics and services operations.
Maersk is due to publish full third-quarter results on Wednesday. The company’s shares have gained about 20% this year, and closed about 1.2% higher on Tuesday.
© 2020 Bloomberg L.P.
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