A.P. Moller - Maersk (Maersk) delivered solid financial results for 2023, according to the company's release. While volumes were up across most products and strong cost control helped improve results, rates continued to erode, particularly in Ocean. Revenue for 2023 was USD 51.1bn with an EBIT margin of 7.7% impacted by declining freight rates.
Guidance is based on the expectation that global container volume growth in 2024 will be in the range of 2.5% to 4.5% and that Maersk will grow in line with the market. It is further expected that the significant oversupply challenges in the Ocean industry will materialise fully over the course of 2024. High uncertainty remains around the duration and degree of the Red Sea disruption with the duration from one quarter to full year reflected in the guidance range. Front-loading is expected towards the start of 2024.
The Board of Directors of Maersk has decided to initiate a demerger of Maersk’s towage business which will be tax exempt for Danish tax purposes. The activities in Svitzer A/S (Svitzer) and its subsidiaries will be contributed to a new company with the legal name Svitzer Group A/S (Svitzer Group) which shares will be distributed pro-rata to Maersk shareholders and are expected to be admitted for trading and official listing on Nasdaq Copenhagen A/S (Nasdaq Copenhagen).
A total distribution of cash to shareholders of USD 771m from share buy-backs took place during Q4 2023. For the full year the cash distribution was USD 3.1bn.
Given the heightened uncertainty, the Board of Directors has decided to immediately suspend the share buy-back programme, with a re-initiation to be reviewed once market conditions in Ocean have settled.
The Board of Directors proposes a dividend to the shareholders for 2023 of DKK 515 per share of DKK 1,000, corresponding to 30% of underlying net results as per the company’s dividend policy.
Financial performance for A.P. Moller - Maersk for 2024 depends on several factors subject to uncertainties related to the given uncertain macroeconomic conditions, bunker fuel prices and freight rates.
A.P. Moller - Maersk is an integrated logistics company working to connect and simplify its customers’ supply chains. The company operates in more than 130 countries and employs around 100,000 people. Maersk is aiming to reach net zero emissions by 2040 across the entire business with new technologies, new vessels, and green fuels.