A.P. Moller – Maersk said it is continuing to “build momentum” in the second quarter of the year, reporting volume growth across all segments, while the EBIT margin reached 7.5% compared to 1.4% in the first quarter.
Maersk noted increased profitability in the Ocean segment, strong growth in Logistics & Services, and outstanding performance in the Terminals sector.
However, the Danish company reported US$12.77 billion in consolidated revenue, US$2.14 billion in consolidated EBITDA, and US$963 million in consolidated EBIT for the second quarter of 2024, with all figures down compared to the corresponding numbers in 2023.
“Our results this quarter confirm that performance in all our businesses is trending in the right direction,” stated Vincent Clerc, CEO of Maersk. “Market demand has been strong, and as we have all seen, the situation in the Red Sea remains entrenched, which leads to continued pressure on global supply chains. These conditions are now expected to continue for the remainder of the year.”
Clerc added, “We have invested in additional equipment in all our businesses to adapt to the situation and continue supporting our customers through the disruptions. As we look ahead, our focus remains on leveraging organic growth while exploring opportunities for value-accretive acquisitions particularly in Logistics. We will maintain tight cost control and high asset utilization, and further execute on our fleet renewal program.”
Maersk’s Ocean segment experienced strong volume growth and higher freight rates, particularly in Asian exports, reflecting heightened supply chain pressure. Although the situation in the Red Sea and rerouting south of the Cape of Good Hope led to higher operating costs, profitability returned to positive territory, according to the ocean carrier.
“While below the same quarter last year, performance was significantly better compared to Q1 2024 and Q4 2023,” pointed out Maersk.
Additionally, Logistics & Services saw a 7% year-on-year growth, with increased volumes across all product lines more than offsetting lower rates. Profitability improved both sequentially and annually, thanks to better asset utilization, effective cost control, and progress in addressing customer implementation challenges in the North American ground freight business.
Morevoer, Maersk’s Terminals sector continued to achieve volume growth, especially in North America. Revenue per move increased significantly due to higher tariffs and storage fees, while cost per move rose slightly. Effective cost management and strong revenue growth boosted profitability, resulting in one of the highest EBITDA levels ever.
Due to continued supply chain disruptions in the Red Sea/Gulf of Aden and strong container market demand, Maersk has raised its financial guidance.
The company now expects global container market growth to be between 4% and 6%, aiming to grow in line with the market, compared to the previous forecast of towards the upper end of 2.5-4.5%.
Additionally, Maersk now anticipates CAPEX to be between US$10 and US$11 billion for 2024-2025 (previously US$9-10 billion) due to ongoing fleet renewal efforts.
