A.P. Moller - Maersk (Maersk) delivered a first quarter in line with expectations showing a strong recovery in earnings compared to the fourth quarter of 2023, according to the company's release. Results were driven by a good performance in Terminals and the combination of higher demand and a prolonged Red Sea crisis. As these conditions are expected to continue well into the second half of the year, Maersk lifts the lower end of its guidance range and now expects underlying EBIT at USD -2.0 to 0.0bn.
The proposed demerger and spin-off of Svitzer’s towage activities was approved at an Extraordinary General Meeting in April 2024 and was listed on Nasdaq Copenhagen on 30 April 2024. Revenue decreased by USD 1.9bn to USD 12.4bn (USD 14.2bn), stemming from Ocean, with an increase in Logistics & Services and in Terminals of USD 33m and USD 123m, respectively. EBITDA decreased to USD 1.6bn (USD 4.0bn), mainly related to Ocean due to lower revenue and higher costs, a decrease in Logistics & Services by USD 50m due to lower rates, while EBITDA increased in Terminals by 20%.
Ocean results were impacted by the situation in the Red Sea with increased market rates and costs due to the supply chain disruptions. Strong volumes, high capacity utilisation and continued cost discipline ensured improved results compared to the previous quarter.
The lower end of the original financial guidance is raised based on a strong market demand with container volume growth towards the upper end of the 2.5-4.5% range and A.P. Moller - Maersk growing in line with the market. Further, the ongoing Red Sea / Gulf of Aden situation is expected to continue into the second half of the year. Over-supply remains a challenge and will eventually prevail, but the impact is delayed.
A.P. Moller - Maersk is an integrated logistics company working to connect and simplify its customers’ supply chains. As a global leader in logistics services, 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.