Maersk now expects earnings before tax and interest (EBIT) of $22-23 billion for 2021 as a whole. File Image / Pixabay
Container shipping giant AP Moller-Maersk has increased its profit guidance by 20% for the year in response to the ongoing 'exceptional market situation' for boxships.
The firm now expects earnings before tax and interest (EBIT) of $22-23 billion for 2021 as a whole, it said in a note to investors on its website on Thursday, up from $18-19.5 billion previously. That compares with EBIT of $4.2 billion in 2020 and $1.7 billion in 2019.
"Given the persistent congestions and bottlenecks in the supply chains, APMM now expects the second half year 2021 to be stronger than previously anticipated, both Q3 and the full year 2021," the company said in the statement.
"The strong result is driven by the continuation of the exceptional market situation within Ocean, which have led to further increases in both long- and short-term container freight rates.
"The current guidance is still subject to uncertainty due to a higher than normal volatility given the temporary nature of both the demand patterns and disruptions in the supply chains."