A.P. Møller – Mærsk A/S (APMM) has released a trading update for the second quarter of 2024, revealing notable financial performance figures. The Copenhagen-based logistics giant reported an unaudited revenue of USD 12.8 billion, with an underlying EBITDA of USD 2.1 billion and an underlying EBIT of USD 756 million. The reported EBIT stood at USD 963 million, showcasing the company’s resilience amidst ongoing market fluctuations.
The logistics sector has faced significant disruptions, particularly due to the situation in the Red Sea, which has created continuous supply chain challenges. Originally anticipated to ease, the disruption is now expected to persist until at least the end of 2024. This extended period of uncertainty has led APMM to revise its full-year guidance upwards, reflecting robust market demand for container shipping.
APMM now projects an underlying EBITDA for the full year to be between USD 9 and 11 billion, and an underlying EBIT ranging from USD 3 to 5 billion. This is a substantial increase from their previous estimates of USD 7 to 9 billion for EBITDA and USD 1 to 3 billion for EBIT. Furthermore, the company expects a free cash flow of at least USD 2 billion, doubling the previous forecast of at least USD 1 billion.
The global container market is also showing promising signs. APMM has adjusted its growth forecast for container market volumes for 2024, now expecting a rise of 4-6%, up from the previously estimated 2.5-4.5%. This optimistic outlook is driven by strong demand, which seems to be offsetting some of the challenges posed by the disrupted supply chains.
However, trading conditions remain volatile. The unpredictability of the situation in the Red Sea and the unclear supply and demand dynamics expected in the fourth quarter continue to pose risks. This heightened volatility underscores the complexity of forecasting in the current environment.
APMM is set to publish its full Q2 interim results on 7 August 2024, which will provide a more detailed look into the company’s performance and future expectations. As the logistics industry navigates these turbulent times, all eyes will be on Maersk’s strategies and adaptations.
