A.P. Moller – Maersk (Maersk) has announced a second quarter of 2023 that was above forecasts, although continuous market normalisation resulted in lower volumes and lower rates.
According to Maersk, its revenue stood at $13.0 billion compared to $21.7 billion in Q2 2022 while profitability was strong at 12.4 per cent although significantly lower compared to the extraordinarily strong Q2 2022.
Despite a worse second half market view, Maersk boosts its financial projection and now anticipates underlying EBITDA of $9.5 – 11.0 billion (previously $8.0 – $11.0 billion) and underlying EBIT of $3.5 – $5.0 billion (previously $2.0 – $5.0 billion).
Shipping revenue fell from $17.4 billion to $8.7 billion as freight rates and loaded volumes fell.
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While the volume and rate situation stabilised at a lower level in Q2, shipping was nevertheless hit by weaker demand, which was driven by a major inventory adjustment, particularly in North America and Europe.
A strong cost management allowed Maersk to partially offset the top line impact on financial performance in shipping.
Logistics & Services revenue was $3.4 billion compared to $3.5 billion. Lower volumes owing to continuing destocking and reduced customer demand, as well as low rates, weighed on the category.
As with shipping, market demand is projected to remain weak as long as the inventory reduction continues.
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According to Maersk, terminals revenue fell to $950 million from $1.1 billion due to the normalisation of storage revenue and lower volumes in the face of weaker consumer demand and less congestion in North America. Strong cost management contributed to the company’s ongoing strong financial success.
Vincent Clerc, CEO of Maersk, said: “The Q2 result contributed to a strong first half of the year, where we responded to sharp changes in market conditions prompted by destocking and subdued growth environment following the pandemic fuelled years.
“Our decisive actions on cost containment together with our contract portfolio cushioned some of the effects of this market normalisation.”
In July 2023, Maersk inaugurated a new 123,000 square foot air freight gateway near Hartsfield–Jackson Atlanta International Airport (ATL).
