Shares of Maersk (CPH: MAERSK) soared nearly 8% today after one of the world’s largest shipping companies raised its full-year earnings guidance.
The Denmark-based firm observed a “sharp drop in volumes” in the second quarter amid the pandemic, causing revenues to fall by 6.5% from the same period last year. A dip in revenue came from a decrease of 16% in the company’s Ocean division and 14% in gateway terminals.
However, EBITDA rose by 25% to $1.7 billion, higher than $1.575 billion expected by analysts. As a result, Maersk expects full-year EBITDA to come between $6 billion and $7 billion, therefore raising the initial guidance of $5.5 billion.
“With a strong result and a strong balance sheet we are well positioned to financially and strategically come out stronger of the crisis,” Chief Executive Soren Skou said in a statement.
Analysts were impressed by the Q2 results.
“Maersk has delivered an extraordinarily good report. The market is refraining from competing on price, and internally Maersk has been phenomenal in adapting to the new situation by cutting costs,” Alm. Brand Chief Equity Analyst Michael Friis Jorgensen said.
Maersk share price rallied 8% to trade just below the 1,000 mark, the highest level in 2020.