COPENHAGEN: August 17, 2018. A.P. Møller – Mærsk has reported a 24 percent rise in Q2 revenue to US$9.5 billion and a net profit of US$26 million.

“The acquisition of Hamburg Süd of course was a positive contributor to growth in our Ocean segment, and we are pleased with the organic growth in non-Ocean. We expect revenue of around US$40 billion in 2018, up almost 50 percent since 2016,” said CEO Søren Skou. “For the rest of the year we expect improvements in our profitability driven by lower unit cost and higher freight rates,” he added.

AP Moller Q2 2018The Group expects an EBITDA in the range of US$3.5-US$4.2 billion for 2018.

The Logistics & Services division, which includes Damco, APM Terminals, Inland/Intermodal Haulage and Trade Finance, reported a 6.7 percent increase in Q2 revenue to US$1.5 billion compared to the same period last year. EBITDA, however, fell from US$46 million to US$28 million due to higher IT costs and lower profitability in inland services.

During the quarter supply chain management revenue increased to US$194 million from US$170 million; airfreight revenue fell US$4.0 million to US$147 million; ocean revenue dropped from US$170 million to US$148 million; and revenue from inland haulage and services rose to US$802 million from US$734 million in Q2 2017.

Commenting on the results of its second-largest division the Group said: “Despite positive revenue growth, Q2 was challenged by increased costs mainly related to IT spend, increased salary costs in inland services and timing of maintenance costs in Star Air. It is the ambition to significantly improve the profitability through the increased sale of integrated end-to-end digital solutions and more efficient operations, which requires in- creased IT spending.”

Group net interest-bearing debt amounted to US$14.3 billion at the end of the quarter while total equity was US$33.6 billion and the liquidity reserve was US$10.2 billion.