A.P. Moller Maersk suspended the full year guidance for 2020 (EBITDA before restructuring and integration costs of around USD 5.5bn) on 20 March 2020 due to the COVID 19 pandemic, which is leading to material uncertainties and lack of visibility related to the global demand for container transport and logistics. The high uncertainties related to the outlook and impact from COVID 19 still persist and therefore the suspension of the full year guidance on EBITDA remains.
Significant contraction in global demand is expected for Q2, with volumes expected to decrease by 20 25% across all businesses affecting both the profitability and cash flow in the quarter. The global market growth in demand for containers is expected to contract in 2020 due to COVID 19 (previously between 1-3% growth). Organic volume growth in Ocean is expected to be in line with or slightly lower than the average market growth.
The accumulated guidance on gross capital expenditures excl. acquisitions (CAPEX) for 2020 2021 is still expected to be USD 3.0 4.0bn, with steps being taken to reduce CAPEX in 2020. High cash conversion (cash flow from operations compared to EBITDA) is expected for both years.