Maersk Raises Profit Outlook on Strong Market
Monday, Oct 21, 2024 11:50 am ET
1min read A.P. Møller - Mærsk A/S (APMM), the world's largest container shipping company, has raised its profit outlook for 2024, citing robust container market demand and continued supply chain disruption in the Red Sea. The company reported preliminary figures for the second quarter of 2024, with unaudited revenue of USD 12.8bn, underlying EBITDA of USD 2.1bn, and underlying EBIT of USD 756m.
The continued supply chain disruption in the Red Sea, now expected to persist until the end of 2024, has contributed to APMM's upgraded full-year 2024 guidance. The company now expects underlying EBITDA of USD 9 to 11bn and EBIT of USD 3 to 5bn, compared to its previous guidance of USD 7 to 9bn and USD 1 to 3bn, respectively. Additionally, Maersk has revised its free cash flow guidance to at least USD 2bn, up from its previous estimate of at least USD 1bn.
The outlook for the global container market volume growth for the full-year 2024 has been revised up to 4-6%, reflecting the strong market demand. This compares favorably to the previous estimate of towards the upper end of 2.5-4.5% and industry forecasts.
While trading conditions remain subject to higher than normal volatility due to the unpredictability of the Red Sea situation and the lack of clarity in supply and demand in Q4, Maersk's revised guidance underscores the company's resilience and adaptability in the face of market challenges.
In conclusion, Maersk's raised profit outlook reflects the company's ability to capitalize on strong market demand and navigate supply chain disruptions. As the global container market continues to grow, Maersk's revised guidance and robust performance position the company well for future success.
The continued supply chain disruption in the Red Sea, now expected to persist until the end of 2024, has contributed to APMM's upgraded full-year 2024 guidance. The company now expects underlying EBITDA of USD 9 to 11bn and EBIT of USD 3 to 5bn, compared to its previous guidance of USD 7 to 9bn and USD 1 to 3bn, respectively. Additionally, Maersk has revised its free cash flow guidance to at least USD 2bn, up from its previous estimate of at least USD 1bn.
The outlook for the global container market volume growth for the full-year 2024 has been revised up to 4-6%, reflecting the strong market demand. This compares favorably to the previous estimate of towards the upper end of 2.5-4.5% and industry forecasts.
While trading conditions remain subject to higher than normal volatility due to the unpredictability of the Red Sea situation and the lack of clarity in supply and demand in Q4, Maersk's revised guidance underscores the company's resilience and adaptability in the face of market challenges.
In conclusion, Maersk's raised profit outlook reflects the company's ability to capitalize on strong market demand and navigate supply chain disruptions. As the global container market continues to grow, Maersk's revised guidance and robust performance position the company well for future success.
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