A.P. Moller - Maersk posts record Q4 results in logistics & terminals
Despite low volumes during most of 2020 for A.P. Moller – Maersk, profitability grew throughout the first nine months and ended the year with record Q4 results in logistics
- Logistics and services grew to $7 billion, compared to $6.3 billion last year.
- Gateway terminals saw a decrease in revenue of 3.9 percent to $3.2 billion in 2020.
February 11, 2021: Despite low volumes during most of 2020 for A.P. Moller – Maersk, profitability grew throughout the first nine months and ended the year with record Q4 results in logistics & terminals, while ocean delivered an exceptional quarter driven by the increased volumes and current, temporary supply chain disruptions.
Ocean is expected to grow in line with the global container demand at an expected 3-5 percent in 2021, with the highest growth seen in the first half-year.
“2020 will forever be remembered for the Covid-19 pandemic that negatively impacted our lives, jobs, businesses and the global economy. I am proud that we have accelerated our transformation and delivered earnings growth during every quarter of 2020, despite very different market conditions, beginning with negative Covid-19 impact in the first half to a rebound in Q4,” says Soren Skou, CEO of A.P. Moller - Maersk.
The company grew underlying earnings before interest, tax, depreciation and amortisation (EBITDA) 44 percent to $8.2 billion and revenue grew to $39.7 billion in 2020 compared to $38.9 billion last year. While the demand surge in the second half of year created supply chain bottlenecks, including vessel and container shortages, and led to higher rates that contributed approximately $1.5 billion to results, ocean further improved its intrinsic performance by focusing on costs, agile capacity management and launching new digital offerings.
Logistics and services grew to $7 billion, compared to $6.3 billion last year, and EBITDA improved 110 percent to $454 million, supported by the acquisition of performance team as well as improved performance in intermodal, air freight forwarding and warehousing and distribution.
“Our customers want us to help them build more resilient supply chains and buy more end-to-end services. Consequently, our logistics business more than doubled earnings in 2020. We are today a profitable, growing logistics company with a broad offering of ocean and air transportation, port services and logistical capabilities, including warehousing, custom services and lead logistics,” added Skou.
Gateway terminals saw a decrease in revenue of 3.9 percent to $3.2 billion in 2020 because of lower volumes due to impact from the pandemic. EBITDA increased by 8.3 percent to $989 million, reflecting an improved EBITDA margin to 31 percent driven by higher revenue per move and cost reductions in several terminals.
Looking forward to accelerating the strategy in 2021, the company will illustrate its path forward and the synergies between ocean and both logistics & services and terminals at a capital markets day on May 11, 2021.
The company expects the current, exceptional situation to continue into 2021 with Q1 to be stronger than Q4, followed by a normalisation thereafter.