By Dominic Chopping
AP Moeller-Maersk AS said Wednesday that continuing Covid-19 lockdowns in China had a limited impact on its first quarter, but that this could worsen the congestion environment in coming quarters as the situation develops while Russia’s invasion of Ukraine has added to supply-chain bottlenecks.
The Danish shipping giant last month pre-released some first-quarter earnings figures and raised full-year guidance, noting that supply-chain disruptions had continued to send container freight rates higher.
In its report Wednesday, the company said that net profit rose to $6.78 billion from $2.72 billion, against the $7.08 billion seen in a FactSet poll.
Revenue at its shipping unit rose 64%, driven by higher freight rates caused by bottlenecks and congestion across global-supply chains. Freight rates in the quarter rose by 71% on the year while shipping volumes slipped 6.7%.
Maersk will withdraw completely from doing business in Russia and has started a process to divest its 31% stake in Global Ports Investments which operates six terminals in Russia and two in Finland.
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It will also exit its two warehouses in Russia, a cold storage facility in St. Petersburg and an inland terminal in Novorossiysk, while its Svitzer unnit will divest its Russian operation that provides towage services in Sakhalin.
The financial impact of the Russia/Ukraine situation on first-quarter earnings before interest and tax was $718 million, it added.
Write to Dominic Chopping at [email protected]
Credit: www.marketwatch.com /