<article><p class="lead">Danish shipping giant AP Moller-Maersk's profits more than doubled on the year in the second quarter, helped by lower bunker fuel costs. </p><p>The firm is the world's biggest consumer of marine fuel and spent $766mn on bunkers in the second quarter, down by 37pc from $1.21bn during the same period last year. Bunker prices paid by the firm in the period fell by 25pc on the year to average $328/t and consumption was 16pc lower at 2.3mn t because sailings decreased as a result of the Covid-19 pandemic. </p><p>"The global container trade declined by around 10pc in the second quarter 2020, as a result of the Covid-19 pandemic impacting both supply chain and demand," the firm said. Marine fuel prices declined as a result of lower demand.</p><p>Fuel costs <a href="https://direct.argusmedia.com/newsandanalysis/article/2104906">had risen by 32pc</a> in the first quarter of this year because of the need to switch to more expensive fuels to comply with the International Maritime Organisation's (IMO) 0.5pc sulphur cap. The new regulation kicked in on 1 January.</p><p>Across the first half of 2020, Maersk's bunker costs fell by 8pc to $2.16bn. </p><p>The lower fuel costs helped mitigate a fall in revenue of just under 7pc to $9bn in the second quarter because of lower container volumes. Maersk's profit for the quarter was $443mn, compared with $153mn a year earlier. </p><p>Disposals, higher freight rates and lower container handling costs also helped boost profits.</p><p>Maersk in March <a href="https://direct.argusmedia.com/newsandanalysis/article/2089108">suspended earnings before interest, tax, depreciation, and amortisation (Ebitda) guidance</a> for 2020 of $5.5bn because of Covid-19, but now sees this year's Ebitda between $6-7bn. Maersk said the new 2020 guidance is subject to "significant" uncertainty, including bunker prices. </p><p class="bylines">By George Collard</p></article>
