Maersk reports Q3 results
A.P. Moller - Maersk (Maersk) reported growth across its businesses and financial results significantly above those of the previous year, primarily driven by Ocean, while both Logistics & Services and Terminals also contributed through improved earnings. On the back of the strong quarter combined with robust container market demand and the continuation of the Red Sea situation, Maersk upgraded its guidance for 2024 on October 21st, now expecting full-year underlying EBIT of USD 5.2 to 5.7bn (previously USD 3.0 to 5.0).
Maersk Ocean’s profitability improvement was driven by the higher freight rates as well as positive volume growth, culminating in a 41% increase in revenue. The network re-routing south of the Cape of Good Hope remained a significant driver of cost base, impacting bunker consumption and overall operating costs. These cost pressures were largely offset by efficient operational execution, resulting in an EBIT increase of USD 2.9bn and margin of 25.5%.
Logistics & Services delivered a strong third quarter with revenue growth of 11% year-on-year and 7.2% sequentially, due to increased volumes across most products. Profitability continued its recovery, landing at an EBIT of USD 200m, an increase of USD 64m year-on-year, primarily from profitable growth in Lead Logistics and Air, resulting in an EBIT margin of 5.1%.
Terminals continued to deliver strong top-line growth, particularly in North America. Revenue per move reached all-time highs during the quarter driven by higher volumes, improved tariffs, and product mix. Accordingly, Terminals achieved its best EBITDA since Q1 2022 of USD 424m and finishing the quarter with a ROIC (LTM) of 13.0%.
As announced on 21 October 2024, on the back of strong Q3 results combined with strong container market demand and the continuation of the Red Sea/Gulf of Aden situation, Maersk raises its financial guidance for the full-year 2024. Maersk now expects global container market growth for the full year to be around 6% (previously 4-6%). CAPEX guidance remains unchanged.
A.P. Moller - Maersk is an integrated logistics company. The company operates in more than 130 countries and employs around 100,000 people. Maersk is aiming to reach net zero emissions by 2040 across the entire business with new technologies, new vessels, and low-emission fuels.
