Danish group Maersk has raised its full-year profit forecast due to higher freight volumes and lower costs, according to its container-shipping line.
Maersk expects a $4.5billion profit in 2014, excluding discontinued operations, impairment losses and divestment gains, compared with a previous forecast of $4 billion, the company said in a statement.
Earnings before interest, tax, depreciation and amortization rose 9% to $3.09billion in the second quarter.
Maersk Line, which transports about 15% of the world’s containers, has been battling industry overcapacity after a boom in ship orders collided with the global financial crisis, triggering the worst slump in prices for carrying cargo since containerization became global in the 1970s.
The unit said on Tuesday 2014 profits will be “significantly” above last year’s result of $1.5billion, compared with a previous forecast of a result “above” 2013’s level.
Maersk will buy back shares for about $1billion within the next 12 months “due to the current strong financial situation,” chief executive Nils Smedegaard Andersen said in the statement.
Net operating profit after tax at Maersk Line rose to $547million in the three months through June from $439million a year earlier.
Maersk also raised profit forecasts for its oil-exploration and port-terminal divisions.
The oil unit, which posted a $1.7billion writedown on its Brazilian assets last month, will report an underlying profit in 2014 in “line with” last year’s $1billion, compared with a previous forecast for declining earnings, Maersk said.
Profit will be helped by higher oil prices, which Maersk says it sees at $108 per barrel compared with $104 a barrel previously.
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