Maersk raises profit forecast again after bumper quarter

AP Moller-Maersk once again raised its full-year forecast of better-than-expected fourth-quarter profits, supported by record freight rates.

The Danish shipping giant expects annual earnings before interest, tax, depreciation and amortization (EBITDA) of $24 billion, up from a forecast of $22-23 billion in November last year . EBIT was revised to $19.8 billion from $19 billion and free cash flow is now expected to increase by nearly $2 billion to $16.4 billion.

For the fourth quarter of 2021, Maersk generated revenue of $18.5 billion, underlying EBITDA of $8 billion and underlying EBIT of $6.8 billion. A 4% quarterly decline in container volumes in the fourth quarter was more than offset by freight rates improving by 80% year-over-year.

“The strong result for the quarter reflects the continuation of the exceptional market situation within the ocean caused by the global disruptions to supply chains, which led to a further increase in container freight rates,” the company said. in a press release.

At the start of 2021, Maersk’s EBITDA expectations were between $8.5 billion and $10.5 billion. Several revisions then followed. The company will give a revised outlook for the full year 2022 on February 9.

The liners, collectively, have been told by consultants Drewry to have made a combined record net profit of more than $150 billion last year.

On December 31, the Shanghai Containerized Freight Index (SCFI) crossed 5,000 for the first time – and it continued to rise in the early days of 2022. It’s going to be a slow season at all,” said Alan Murphy , CEO of Sea-Intelligence.

Comments are closed.