- World’s Biggest Shipping Line suspends its outlook due to the uncertainty caused by the spread of the virus.
- Maersk’s first-quarter earnings are set to improve from a year earlier, as better cost controls outweigh declining freight volume.
- Shares soared as much as 13%, gaining more than benchmark stock indexes, which traded higher across the board.
- Maersk earnings will probably be about $1.4 billion in the first quarter, up from $1.24 billion a year earlier.
Maersk, which controls about a fifth of the global container fleet, suspends its outlook due to the uncertainty caused by the spread of the virus, reports Bloomberg.
Reassurance to shareholders and public
A.P Moller-Maersk A/S, the world’s biggest shipping line, said it’s committed to rewarding shareholders and reassured the public that its own operations were uninterrupted by the fallout of the coronavirus.
Maersk, which controls about a fifth of the global container fleet, suspends its outlook due to the uncertainty caused by the spread of the virus.
Shares soared 13%
But first-quarter earnings are set to improve from a year earlier, as better cost controls outweigh declining freight volumes, the Copenhagen-based company said.
Its shares soared as much as 13%, gaining more than benchmark stock indexes, which traded higher across the board.
Share buyback program
Maersk said the economic threats posed by the coronavirus pandemic never stopped its share buyback program and will also keep paying out dividends to investors.
Well capitalized
Per Hansen, an investment economist at Nordnet, said the announcement sends “a very strong signal” and shows that Maersk “is well capitalized.”
Maersk’s earnings
According to Maersk earnings before interest, tax, depreciation and amortization will probably be about $1.4 billion in the first quarter, up from $1.24 billion a year earlier.
Improved freight rates
The increase is due to improved freight rates that compensate for higher oil costs.
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Source: Bloomberg
