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Maersk Upgrades Forecast on Q3 Results

[ November 15, 2024   //   ]

Danish shipping giant A.P. Moller – Maersk said higher freight rates coupled with increasing container volumes led to improved third quarter revenue and profit.
Maersk reported growth across its businesses, primarily driven by Ocean, while both Terminals and Logistics and Services also contributed to improved earnings. Consolidated revenue increased 30 percent to US$15.8 billion, while operating profit reached US$3.3 billion, compared to US$538 million for the third quarter of 2023.
The strong quarter, combined with robust container market demand and the continuation of the Red Sea situation, led Maersk to upgrade its guidance for 2024 on Oct. 21 to full-year operating profit of US$5.2 billion to US$5.7 billion, up from US$3 billion to US$5 billion previously. Maersk expects global container market growth for the full year to be about 6 percent, up from 4 percent to 6 percent.
“We reaffirmed our commitment to profitable growth and operational progress, driving results across all business areas through continued rigorous focus on cost discipline, productivity gains, and efficient asset utilization,” said Vincent Clerc, CEO at Maersk.
Maersk’s Ocean revenue jumped 41 percent to US$11.1 billion, while operating profit reached US$2.4 billion, following a loss of US$27 million in the third quarter of 2023. The network rerouting south of the Cape of Good Hope remained a significant driver, impacting bunker consumption and overall operating costs. These cost pressures were largely offset by efficient operational execution, resulting in an EBIT increase of US$2.9 billion and margin of 25.5 percent.
“Our Ocean team responded to the recurring network disruptions with high agility by leveraging our hub terminals and investing in capacity and equipment to mitigate the supply chain impact on our customers while optimizing unit costs,” Clerc said.
Logistics and Services saw revenue grow 11 percent year-on-year to US$3.9 billion, and 7.2 percent sequentially, due to increased volumes across most products. Profitability continued its recovery, landing at an EBIT of US$200 million, up 47 percent year-on-year.
Terminals continued to deliver strong top-line growth, particularly in North America, with revenue improved 18.4 percent to US$1.2 billion, and operating profit jumped 25.2 percent to US$338 million, Maersk said. Revenue per move reached all-time highs during the quarter driven by higher volumes, improved tariffs, and product mix.

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