Maersk posts higher average bunker price, lower consumption

As a result, fuel costs rose marginally (0.4%) in Q2 and declined by 2% in H1.



Image credit: Maersk


Updated on 15 Aug 2019 10:28 GMT

A.P Moller - Maersk reports that the average bunker price rose year-on-year (YoY) by $35, or 8.7 percent, to $436 per tonne during the second quarter (Q2) of 2019.

For the first six months (H1), the mean bunker price was $426 per tonne, which was $35 - or 9.0 percent - higher than the $391-per-tonne figure recorded in the prior-year period.

Maersk: Average bunker price

2019 ($/mt) 2018 ($/mt)
Q2 436 401
H1 426 391
Source: Maersk


However, whilst bunker prices were higher, the total amount of marine fuel consumed by Maersk in Q2 fell by 225,000 tonnes, or 7.5 percent, to 2.777m tonnes; and in H1, bunker use declined by 615,000 tonnes, or 10.0 percent, to 5.516m tonnes.

Maersk: Bunker consumption

2019 (MMT) 2018 (MMT)
Q2 2.777 3.002
H1 5.516 6.131
Source: Maersk


As a result, the overall spend on marine fuels was up marginally by $5m, or 0.4 percent, to $1.210bn. In H1, meanwhile, bunker costs decreased by $47m, or 2.0 percent, to $2.352bn.

Maersk: Bunker costs

2019 ($bn) 2018 ($bn)
Q2 1.210 1.205
H1 2.352 2.399
Source: Maersk


Ocean EBITDA and revenue

The Ocean division achieved an increase in Q2 revenue of $198m, or 2.8 percent, to $7.15bn. In H1, sales climbed $317m, or 2.3 percent, to $14.079bn.

EBITA, meanwhile, rose YoY by $212m, or 24.8 percent, to $1.068bn in Q2, and by $487m, or 32.3 percent, to $1.995bn in H1.

Maersk's Ocean segment includes the ocean activities of Maersk's Liner Business (Maersk Line, MCC, Seago Line and Sealand) together with Hamburg Sud brands Hamburg Sud and Alianca as well as strategic transshipment hubs under the APM Terminals brand.

A.P. Moller - Maersk: key results

Maersk posted a Q2 underlying profit of $134m - up $119m on the previous year's figure. In H1, the Danish firm achieved a profit of $65m, compared to the $314m loss posted in H1 2018.

EBITDA in Q2 increased YoY by $195m, or 16.8 percent, to $1.357bn; and half-year EBITDA climbed $500m, or 23.9 percent, to $2.593bn.

Revenue in Q2 rose YoY by $59m, or 0.6 percent, to $9.627bn, whilst in H1 it grew $294m, or 1.6 percent, to $19.167bn.

Guidance

In its guidance for 2019, Maersk said that a $100 change in the price of bunker fuel (net of expected BAF coverage) would lead to the group's EBITDA varying by $200m.

Maersk maintains that it still expects to post an EBITDA of around $5.0bn in 2019.