Maersk’s first quarter results ‘in line with expectations, despite disruptions in the Red Sea’

Maersk’s first quarter results ‘in line with expectations, despite disruptions in the Red Sea’
Maersk’s first quarter results ‘in line with expectations, despite disruptions in the Red Sea’


AP Moller – Maersk delivered a first quarter in line with expectations, showing a strong recovery in profits compared to the fourth quarter of 2023. The results were driven by a good performance in Terminals and the combination of higher demand and a prolonged crisis in the Red Sea. With these conditions expected to continue well into the second half of the year, Maersk is raising the lower end of its forecast range.

Vincent Clerc, CEO of Maersk: “We have had a good start to the year, with the first quarter developing precisely as we expected. Demand is trending towards the top of our market growth guidance, and conditions in The Red Sea remains entrenched. This not only supported a recovery in the first quarter compared to the previous quarter, but also provides an improved outlook for the coming quarters, as we now expect these conditions to stay with us for the most part. of the year But we still anticipate the high number of new ships delivered during this year and the next to ultimately offset these factors and put the ocean markets under renewed pressure. We therefore relentlessly pursue our cost reduction agenda in the. aim to reduce costs related to disruptions in the Ocean and restore margins in Logistics & Services This work on costs, aided by our strong value proposition, is crucial to supporting our customers through continued volatility and building. a more resilient business.”

Financial guidance for 2024
The lower end of the original financial forecast range is raised due to strong market demand, with container volume growth towards the upper end of the range of 2.5-4.5% and AP Moller – Maersk growing in line at the market. Additionally, the ongoing Red Sea/Gulf of Aden situation is expected to continue into the second half of the year. Oversupply remains a challenge and will ultimately prevail, but the impact is delayed.

For the full year 2024, AP Moller – Maersk raises its financial forecasts as seen in the table below.

Sensitivity orientation
AP Moller – Maersk’s financial performance for 2024 depends on several factors subject to uncertainties, related to uncertain macroeconomic conditions, bunker fuel prices and freight rates. All things being equal, the sensitivities for 2024 for four key assumptions are listed below:

Cash distribution to shareholders
A total cash distribution to shareholders of USD 1.5 billion occurred during the first quarter of 2024 through dividends paid of USD 1.0 billion and share repurchases of USD 443 million.

For more information :
Morten Buttler
AP Moller – Maersk
Such. : +45 28148202
[email protected]

Publication date:

Fri May 10, 2024

-

-

PREV Struggling clinics are holding back Germany’s medtech sector
NEXT New federal cybersecurity strategy to counter blind spots