March 20, 2020 / 7:33 AM / 15 days ago

BRIEF-Moeller-Maersk Suspends 2020 EBITDA Guidance

March 20 (Reuters) - AP Moeller - Maersk A/S:

* REG-TRADING UPDATE FOR Q1 AND SUSPENSION OF 2020 FULL YEAR GUIDANCE

* REG-TRADING UPDATE FOR Q1 AND SUSPENSION OF 2020 FULL YEAR GUIDANCE

* EXPECTS EBITDA BEFORE RESTRUCTURING AND INTEGRATION COSTS FOR Q1 TO BE AROUND USD 1.4BN (USD 1.24BN) NEGATIVELY IMPACTED BY WEAK VOLUME DEVELOPMENT BUT MITIGATED BY STRONG IMPLEMENTATION OF OUR IMO 2020 STRATEGY, BOTH IN TERMS OF COST REDUCTION INITIATIVES AND FUEL PRICE RECOVERY

* MATERIAL UNCERTAINTIES AND LACK OF VISIBILITY RELATED TO GLOBAL DEMAND FOR CONTAINER TRANSPORT

* AON CORONAVIRUS: GLOBAL COVID-19 PANDEMIC SEVERELY IMPACTS GLOBAL TRANSPORT MARKET AND SUPPLY CHAINS

* ONGOING SHARE BUY-BACK PROGRAM AS WELL AS PROPOSED DIVIDENDS FOR 2019 WILL NOT BE AFFECTED

* GLOBAL OPERATIONS ARE RUNNING AS NORMAL, APMM HAS, AS A CONSEQUENCE OF CURRENT UNCERTAINTIES RELATED TO OUTLOOK, DECIDED TO SUSPEND 2020 GUIDANCE ON EBITDA PENDING MORE CLARITY ON MARKET DEVELOPMENT AND FINANCIAL IMPLICATIONS

* REMAINING PART OF GUIDANCE FOR 2020 OF VOLUME GROWTH IN OCEAN EXPECTED TO BE IN LINE OR SLIGHTLY LOWER THAN MARKET GROWTH

* EXPECT TO DELIVER A Q1 2020 WHICH IS BETTER THAN Q1 2019, DESPITE DECLINING VOLUMES ACROSS OUR BUSINESSES, DRIVEN BY COVID-19

* HIGH CASH CONVERSION RATIO AND ACCUMULATED CAPEX FOR 2020-21 OF BETWEEN USD 3-4BN IS REITERATED, BUT MEASURES WILL BE TAKEN TO REDUCE CAPEX FOR 2020 Source text for Eikon: Further company coverage: (Gdansk Newsroom)

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