A.P. Moller - Maersk delivered a first quarter in line with expectations, showing a strong recovery in earnings compared to the fourth quarter of 2023. Results were driven by a good performance in Terminals and the combination of higher demand and a prolonged Red Sea crisis. As these conditions are expected to continue well into the second half of the year, Maersk lifts the lower end of its guidance range.
Vincent Clerc, CEO of Maersk: "We had a positive start to the year, with a first quarter developing precisely as we expected. Demand is trending towards the higher end of our market growth guidance, and conditions in the Red Sea remain entrenched. This not only supported a recovery in the first quarter compared to the previous quarter, but also provide an improved outlook for the coming quarters, as we now expect these conditions to stay with us for most of the year. However, we still anticipate the high number of new vessels being delivered during this and next year to eventually offset these factors and put the ocean markets under renewed pressure. We therefore relentlessly continue to pursue our cost agenda with the aim of rolling back the disruption linked cost in Ocean and restoring margins in Logistics & Services. This work on cost, helped by our strong value proposition, is crucial in supporting our customers through the ongoing volatility and build a more resilient business."
Financial guidance for 2024
The lower end of the original financial guidance is raised based on a strong market demand, with container volume growth towards the upper end of the 2.5-4.5% range and A.P. Moller - Maersk growing in line with the market. Further, the ongoing Red Sea / Gulf of Aden situation is expected to continue into the second half of the year. Over-supply remains a challenge and will eventually prevail, but the impact is delayed.
For the full-year 2024, A.P. Moller - Maersk raises its financial guidance as seen in the table below.
Sensitivity guidance
Financial performance for A.P. Moller - Maersk for 2024 depends on several factors subject to uncertainties, related to uncertain macroeconomic conditions, bunker fuel prices and freight rates. All else being equal, the sensitivities for 2024 for four key assumptions are listed below:
Cash distribution to shareholders
A total distribution of cash to shareholders of USD 1.5bn took place during Q1 2024 through dividends paid of USD 1.0bn and share buy-backs of USD 443m.
For more information:
Morten Buttler
A.P. Moller - Maersk
Tel.: +45 28148202
Email: [email protected]