Maersk raises profit outlook on strong market

Danish shipping group AP Moller-Maersk said on Monday (Oct 21) it had raised its full-year forecasts on the back of strong third quarter results, robust demand and the continuing disruption to shipping in the Red Sea.

Maersk said it had revised its outlook for global container market volume growth in 2024 to around 6 per cent from a range of between 4 per cent to 6 per cent seen previously.

Maersk reported preliminary underlying earnings before interest, tax, depreciation and amortisation (Ebitda) of US$4.8 billion for the third quarter. Analysts had forecast Ebitda of US$3.7 billion for the period, according to LSEG data.

Revenue was US$15.8 billion, beating the US$14.4 billion forecast by analysts.

Attacks on vessels in the Red Sea by Iran-aligned Houthi militants have disrupted a shipping route vital to east-west trade, with prolonged re-routing of shipments pushing freight rates higher and causing congestion in Asian and European ports.

Maersk now expects full-year underlying Ebitda of between US$11.0 billion and US$11.5 billion, up from a previous range of US$9 billion to US$11 billion, the group said.

Earnings before interest and tax for 2024 were meanwhile seen at between US$5.2 billion and US$5.7 billion, up from US$3 billion to US$5 billion earlier. REUTERS