Revenue fell 1.4% on the year, less than the company had expected, with declines in operations at Ocean and Gateway Terminals “partially offset by increased revenue from logistics and 11% services due to acquisitions, ”the earnings report says.
Despite having been negatively impacted by a “sharp drop in volumes” in the previous quarter, the company had raised its forecast for the full year before an expected peak in demand in the third quarter, as measures to contain the pandemic of coronaviruses were relaxed around the world.
The board also chose to issue a new DKK 10 billion ($ 1.59 billion) share buyback program, which will run for 15 months from December 2020.
“A stronger than expected recovery in demand, following the slowdown in the second quarter, has led to the reactivation of all available tonnage as well as significantly higher prices in the market in the short term,” said the CEO of Maersk Soren Skou in a statement Wednesday, adding that the company’s focus on profitability has resulted in a particularly strong quarter in its ocean operations.
Skou said the pandemic continued to weigh on global supply chains, and noted that this high level of uncertainty will persist in the quarters to come, with lockdown measures reapplied in various parts of the world.