Bunker Busts Maersk’s Margins As 1Q Profit Leaves Steep Hill To Climb in 2018 — Panjiva
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Bunker Busts Maersk’s Margins As 1Q Profit Leaves Steep Hill To Climb in 2018

Corp - Shipping 973 Earnings 724 Global 1389 Mode - Containerized 1465 Mode - Seaborne 1798

Container-line Maersk reported a 30% surge in 1Q revenues, beating analysts’ expectations by 5%, as a result of a 24% rise in volumes and 7% increase in achieved rates. The latter was close to Hapag-Lloyd’s level and well ahead of the 1% decline seen sector-wide. Yet, that wasn’t enough to keep up with bunker fuel costs which jump 52% on a year earlier. As a result profitability (EBITDA margin) of 7% was down from 9% a year earlier an analyst expectations of 11%. Significant price increases or cost cutting will be needed for management to deliver its target $4 billion or more of EBITDA t...

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