By Olivia Bugault
A.P. Moeller-Maersk AS raised its financial guidance for its third quarter and the full year, as continuing bottlenecks in supply chains have led to higher freight rates.
"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," Maersk said Thursday.
Underlying earnings before interest, taxes, depreciation, and amortization should come close to $7 billion in its third quarter, and between $22 billion and $23 billion for its full year, the world's largest container shipping line by capacity said. The company had previously expected its 2021 underlying Ebitda to be between $18 billion and $19.5 billion, it said.
The company targets underlying earnings before interest and taxes of close to $6 billion for the July-Sept. period, and of between $18 billion and $19 billion for its full year, it said. That compares to a previous forecast of $14 billion-$15.5 billion for its 2021 underlying EBIT.
Free cash flow for the year should be at least of $14.5 billion, or $3 billion more than previously expected, it said.
Maersk said that the market is more volatile than normal and that, therefore, uncertainties that could affect its guidance remain. It will publish its third-quarter results on Nov. 2.
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(END) Dow Jones Newswires