AP Møller - Mærsk Initiates Share Buyback Program: A Strategic Move for Shareholders

A.P. Møller - Mærsk A/S (the "Company") has announced the initiation of a share buyback program, aiming to repurchase shares worth up to DKK 14.4 billion (around USD 2 billion) over a period of 12 months. The first phase of the program, running from 7 February to 6 August 2025, will focus on acquiring shares with a total market value of up to DKK 7.2 billion (around USD 1 billion), with a maximum of 325,000 A shares and 1,900,000 B shares to be repurchased. The Company has appointed Skandinaviska Enskilda Banken ("SEB") as the Lead Manager for the first phase of the share buyback program.

The share buyback program is set to be executed under EU Commission Regulation No. 596/2014 and the Commission Delegated Regulation (EU) 2016/1052, ensuring compliance with insider legislation during the share buy-back period. The program is initiated pursuant to the authorization granted to the Board of Directors by the Annual General Meeting in March 2023, which allows the Company to acquire treasury shares at a nominal value not exceeding 15% of the share capital at the market price applicable at the time of acquisition, with a deviation of up to 10%.

The primary objective of the share buyback program is to adjust the capital structure of the Company by ultimately cancelling the repurchased shares. This strategic move is expected to have several positive effects on the Company's financial metrics and shareholder value:

1. Increase in Earnings per Share (EPS): By reducing the number of outstanding shares, the Company's net income will be distributed among fewer shares, leading to an increase in EPS. This can make the Company appear more profitable, even if net income remains constant, and potentially attract more investors.
2. Improved Return on Equity (ROE): A lower number of outstanding shares can also lead to an increase in ROE, as the Company's net income is now distributed among fewer shares. This can make the Company's equity more valuable.
3. Signal of Confidence: The initiation of the share buyback program signals management's confidence in the Company's future growth prospects, which can positively influence investor sentiment and the stock price.
4. Offsetting Dilution: By repurchasing shares, the Company can help offset the dilution that results from new shares issued as part of employee compensation plans or to raise capital, maintaining the value of existing shareholders' equity.
5. Optimizing Capital Structure: The Company may use buybacks to adjust its capital structure by reducing equity and potentially increasing debt, lowering the Company's cost of capital, improving leverage ratios, and creating a more efficient balance sheet.



The Company's decision to initiate a share buyback program aligns with its long-term strategy of enhancing shareholder value and maintaining a strong financial position. As the program progresses, investors should closely monitor the Company's financial performance and the impact of the share buyback on its capital structure, earnings per share, and return on equity.