Investor Presentaiton
37
A.P. Moller-Maersk Annual Report 2020
Directors' Report
Performance 2020 Performance overview
Performance overview
Revenue
EBITDA
Ocean
↑ USD 29,175m
↑ USD 6,545m
Logistics
& Services
↑ USD 6,963m
↑ USD 454m
3
Terminals
& Towage
JUSD 3,807m
↑ USD 1,205m
Manufacturing
& Others
↓ USD 1,254m
↑ USD 165m
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Ocean revenue was USD 29.2bn (USD 28.8bn) with nega-
tive effects from COVID-19 on loaded volumes, predomi-
nantly in Q2, offset by the effects of higher freight rates.
EBITDA increased to USD 6.5bn (USD 4.4bn), yielding an
EBITDA margin of 22.4% (15.4%). Profitability improved in
2020 as a result of higher rates, lower costs and timely
responses to changing market conditions where agile
capacity deployment was executed to meet both mid-year
global demand downturn and demand surges towards the
end of the year. The average loaded freight rate increased
by 7.9% due to short-term rate increases, and total oper-
ating costs decreased by 5.8% from improved cost man-
agement, higher utilisation and lower bunker cost.
Logistics & Services reported a revenue of USD 7.0bn (USD
6.3bn), driven by increasing revenue in warehousing and
distribution including Performance Team, air freight for-
warding and supply chain management, offset by decrease
in intermodal and sea freight forwarding. Gross profit grew
to USD 1.6bn (USD 1.2bn) reflecting a gross profit margin
of 23% (20%) with margins improving throughout the year.
The improvement was supported by margin optimisation
in especially intermodal and warehousing and distribution
and effects from the acquisition of Performance Team,
partially offset by lower margins in supply chain manage-
ment. EBITDA increased to USD 454m (USD 216m).
Terminals & Towage reported an increased EBITDA of USD
1.2bn (USD 1.1bn), despite revenue decreased by 3.6% to
USD 3.8bn (USD 3.9bn). In gateway terminals, revenue
decreased with lower volumes due to COVID-19. EBITDA
increased to USD 989m (USD 913m), mainly driven by con-
solidation of Pipavav, India, and cost savings partly off-
set by lower volumes. The decrease in volumes of 3.6%
was driven by lower volume of 1.2% from the Ocean seg-
ment and 4.9% from external customers. Towage reported
a revenue of USD 681m (USD 695m), with an EBITDA of USD
216m (USD 205m), mainly due to lower costs, aligned to
the strategic growth initiatives launched in 2019.
Manufacturing & Others revenue decreased to USD 1.3bn
(USD 1.4bn) while EBITDA increased to USD 165m (USD
136m). Maersk Container Industry EBITDA increased to
USD 77m (USD 29m), which was the strongest financial
year of its core marine reefer business. Maersk Supply
Service EBITDA decreased to USD 21m (USD 28m), reflect-
ing lower activity offset by cost reductions. For other
businesses, revenue was USD 415m (USD 484m), and
EBITDA was USD 66m (USD 80m).
Ө
Ocean has actively deployed capacity to accom-
modate the significant demand fluctuations by
withdrawing in H1 and increasing in H2, which
helped mitigate the worsened schedule reliability
caused by the global supply chain disruptions to
service Ocean customers best possible.
Maersk Spot gained significant momentum in
2020 and, measured on the last four weeks in
2020, accounted for 51% (20%) of total loaded
short-term volume under the Maersk brand.
Air freight forwarding and less container load (LCL)
products was integrated into Maersk logistics and
services to complement the end-to-end offering
effective as of October. The Damco brand was
discontinued.
The combined warehousing and distribution, and
customs services presence has increased with the
integration of Performance Team in North America
and KGH Customs Services in Europe.
All terminals remained operational through-
out the COVID-19 pandemic. The new terminal
in Vado, Italy, began operations in Q1 and the
terminal in Tema, Ghana, ramped up during 2020.
Towage signed new contracts and negotiated
extensions to existing contracts. Operations
were updated with new locations and planned
exit of others.
Maersk Container Industry saw higher Star Cool Unit
sales compensating for lost Star Cool Integrated
production in Q1 due to COVID-19 and achieved the
highest ever third-party unit bookings total.
Maersk Supply Service was awarded several
contracts in the North Sea and Africa for its
integrated solution service.View entire presentation