A.P. Moller - Maersk is raising its full-year guidance for 2020 on the back of a stronger performance seen in the third quarter and volumes rebounding faster than expected.

Maersk said in a statement that given the result in Q3 2020 and the current earnings momentum it sees across its businesses, the full year 2020 EBITDA is now expected to be in the range of US$7.5-US$8 billion, before restructuring and integration costs from the earlier estimate of US$6 billion to US$7 billion. 

“A.P. Moller - Maersk is on track to deliver a strong Q3 with solid earnings growth across all our businesses, in particular in Ocean and Logistics & Services," said Søren Skou, CEO of A.P. Moller - Maersk.

"Volumes have rebounded faster than expected, our cost have remained well under control, freight rates have increased due to strong demand and we are growing earnings rapidly in Logistics & Services. The outlook for Q4 is solid for the same reasons, and we are therefore able to upgrade our expectations for the full year," he added.

The Maersk chief noted, however, that the outlook for 2021 remains uncertain due to the ongoing pandemic as he said the positive impact from stimulus packages may be less strong in 2021, potential new lockdowns could impact demand and the timing and effectiveness of a potential vaccine will impact 2021.

For Q3, Maersk said it now reports an unaudited revenue of US$9.9billion and an EBITDA before restructuring and integration costs of US$2.4billion for Q3 2020, driven by a continued recovery in demand and our initiatives to improve cost.

Maersk said volumes in Ocean declined by around 3% in Q3 2020 compared to the previous year, but this is already slightly better than the anticipated mid-single-digit contraction.

The shipper said trading conditions for the quarters ahead remain subject to a higher than normal uncertainty given the disruptions caused or potentially being caused by COVID-19.