A.P. Moller - Maersk increased momentum in Q2 2024 on the back of strong market demand with increased volumes, higher rates and continued cost control.
Profitability in Ocean picked up compared to Q1 2024 due to higher freight rates caused by the continued Red Sea/Gulf of Aden situation, the robust container market demand and some port congestions in Asia and Middle East. Logistics & Services progressed with revenue growth gaining momentum, increased volumes across all product families and cost control, with the EBIT margin recovering to 3.5%, back on track towards the 6% target. Terminals showed continued high performance with strong volume growth in North America and tight cost control leading to one of the highest EBITDA levels ever.
As communicated on 1 August 2024, due to the continued supply chain disruptions caused by the Red Sea/Gulf of Aden situation and the robust container market demand triggering an increased container volume growth outlook to 4-6% (previously towards the upper end of 2.5-4.5%), the guidance for 2024 is revised upwards to an underlying EBITDA of USD 9.0-11.0bn (previously USD 7.0-9.0bn), an underlying EBIT of USD 3.0-5.0bn (previously USD 1.0-3.0bn), a free cash flow of at least USD 2.0bn (previously at least USD 1.0bn) and CAPEX in 2024-2025 of USD 10.0-11.0bn (previously USD 9.0bn-10.0bn).
Highlights Q2 2024
A.P. Moller - Maersk's results were positively impacted by increasing volumes across segments and higher revenue per move in Terminals, offset by year-on-year rate impacts in Ocean and Logistics & Services, resulting in revenue of USD 12.8bn (USD 13.0bn). While EBITDA of USD 2.1bn (USD 2.9bn) and EBIT of USD 963m (USD 1.6bn) were below the previous year, driven by Ocean, both Logistics & Services and Terminals showed EBIT improvements. Sequentially, revenue increased by USD 416m compared to Q1 2024, and EBITDA and EBIT increased by USD 554m and USD 786m, respectively, leading to an EBITDA margin of 16.8% and an EBIT margin of 7.5%.
Ocean results increased sequentially due to strong volume growth of 5.9% and higher rates, primarily in Asia exports, reflecting the increased supply chain pressure. Compared to the previous year, volumes increased by 6.7%. The re-routing south of Cape of Good Hope continued to lead to higher bunker consumption and higher operating costs. While lower compared to Q2 2023, EBIT was significantly better compared to Q1 2024 and Q4 2023 and reached an EBIT margin of 5.6%.
Logistics & Services reported revenue growth both sequentially and year-over-year of 3.7% and 7.3%, respectively, due to increased volumes across all product families, offsetting continued low rates. EBIT was slightly ahead of Q2 2023 and rebounded from the low Q1 2024 EBIT, with profitable growth in Lead Logistics, Air and First Mile.
Terminals continues to deliver volume growth, particularly in North America. Revenue per move increased significantly by 6.7% due to higher tariffs and higher storage, while cost per move increased slightly by 1.1%. The increase in the results from joint ventures and associated companies also contributed to increased profitability. As such, Terminals reported a strong EBIT with ROIC (LTM) exceeding 12%.
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For more information: 
Morten Buttler
A.P. Møller - Mærsk
Tel.: +45 28148202
Email: [email protected]