AP Moller - Maersk (Maersk) has once again broken all records with Q1 revenue up 55% to $19.3 billion. Ebitda more than doubled to $9.1bn and free cash flow increased to $6bn.
“In Q1 we delivered the best earnings quarter ever in AP Moller – Maersk, with growth across ocean, logistics and terminals. The increased earnings are driven by freight rates and by contracts being signed at higher levels. In logistics we enjoyed strong demand for products and solutions across our portfolio, leading to the fifth quarter in a row with organic growth of more than 30%. Terminals presented its best quarter ever,” said CEO Søren Skou.
Ocean revenue increased 64% to $15.6bn as strong rates more than offset a 7% decline in volumes. “Revenue for the full year is expected to continue to be strong as the increase in freight rates on our long-term contract portfolio will add approximately $10bn to revenue in 2022 compared to 2021,” said Skou. “This will more than offset the significant increase in costs, which were up 21% in the first quarter given higher fuel costs and inflationary pressure on network and container handling costs.”
Revenue in logistics grew 41% to $2.9bn compared to the same quarter last year. “At the same time Maersk continues to invest in acquisitions that add capabilities within technology and e-commerce and strengthen the portfolio, such as Pilot Freight Services, which closed on May 2.”
In terminals, revenue increased to $1.1bn in Q1 compared to $915m last year, and the return on invested capital (ROIC) ended at a record 12.5%.
Freight rates remained elevated while container demand declined by 1.2%, compared to +8% in 2021, while global air cargo volumes increased by 2.9%. Trade flow growth flattened from the Far East to both North America and Europe. Russia’s invasion of Ukraine is having a negative impact on trade flows and consumer confidence in Europe. Given this background, global container demand is now expected to grow -1/+1pct, compared to an earlier expectation of 2-4pct.
As announced on April 26, Maersk anticipates an underlying Ebitda of around $30bn, an underlying Ebit of around $24bn, and a free cash flow above $19bn for the full year.
This is based on a strong first half of 2022 as well as higher contracted rates, while the normalisation in ocean is still expected to take place early in the second half of the year.
