Maersk books $3.7 billion profit in Q2 earnings update

E-commerce drives the Port of Baltimore to operational records

A.P. Moller – Maersk (Maersk) has reported profits of $3.7 billion in the second quarter of 2021.

This is now the 12th quarter of successive year-on-year earnings progress.

Earnings in Q3 are expected to be even higher than Q2, Maersk wrote.

Revenue grew by 58% to $14.2 billion in Q2 and Earnings Before Interest and Taxes (EBIT) increased almost five times to $4.1 billion.

The net result came in at $3.7 billion in the second quarter of 2021, bringing the net profits for the first half of 2021 to $6.5 billion.

Profitability in Maersk’s Ocean sector was driven by revenue growth to $11.1 billion from $6.6 billion.

The growth came from a 15% rebound in volumes and an increase in average freight rates of 59%, as both long-terms contracts rates with key clients increased and short-term contracts were still impacted by congestions and bottlenecks.

Logistics & Services, a surging portfolio offering from the Danish shipping giant, delivered 38% revenue growth to $2.2 billion in Q2 with more than half coming from the top Ocean customers, Maersk wrote.

Gateway Terminals had a strong Q2 with volumes rebounding 24% and persisting high storage income. Revenue increased to $969 million from $723 million last year.

Søren Skou, CEO, Maersk, commented, “The strong results benefited both from the exceptional circumstances in Ocean, where congestions and bottlenecks continued to drive up rates, and from solid progress in executing on our strategic transformation where we kept a firm focus on our customers need for integrated solutions across their supply chains.

“I am pleased with the strategic progress we have made and the high value generation. We continue to build a higher quality Ocean business with more long-term contracts, a rapidly growing logistics business, and a value creating terminals business.”

Moving forward, Ocean is “still expected to grow in line with global container demand,” the company wrote, expected to grow 6-8% in 2021, primarily driven by export volumes out of China to the US.

For 2021-2022, the expectation for the accumulated CAPEX remains to be around $7 billion.

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