Maersk saw across-the-board gains in revenue and earnings in 2024 on buoyant freight rates and sustained demand throughout the year.
The world’s second-largest ocean container line on Thursday reported full-year 2024 revenue of $55.4 billion, up from $51 billion in 2023; pretax profit (earnings before interest, taxes, depreciation and amortization) of $12.1 billion, up from $9.6 billion; and operating profit (earnings before interest and taxes) of $6.5 billion, increased from $3.9 billion.
Revenue from the ocean division came to $37.4 billion from $33.7 billion; logistics sales totaled $14.9 billion from $13.9 billion; and terminals revenue was $4.5 billion, up from $3.8 billion.
Container volume grew 0.8% compared to worldwide gains by all carriers of 5.3%.
Ocean pretax profit totaled $9.2 billion from $6.9 billion the previous year. Operating profit was $4.7 billion, up from $2.2 billion.
Ocean EBITDA margin was 24.6%; EBIT margin was 12.7%. That compares to EBITDA of competitor and new Gemini alliance partner Hapag-Lloyd at 24.2% and Ocean Network Express (ONE) at 31.2%.
The Denmark-based vessel operator said capital spending in the ocean business in 2024 increased to $2.7 billion from $1.9 billion.
Ocean fuel costs rose just 1.7% in 2024 despite the effects of the Red Sea crisis, which forced Maersk to reroute ships on longer voyages from Asia to the Mediterranean, Europe and North America around Africa’s Cape of Good Hope.
In an earnings release, Maersk said: “Higher bunker [fuel] consumption by 14% and higher container handling costs by 5.5% were attributable to the re-routing south of the Cape of Good Hope. Network cost excluding bunker decreased by 1.5%, mainly due to the lower port and canal cost associated with fewer Suez Canal crossings offsetting the increased transshipment, time charter equivalent and slot charter costs. SG&A [selling, general and administrative expenses] decreased by 10% reflecting the continuous efforts to streamline the organization.”
Find more articles by Stuart Chirls here.
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