A.P. Moller-Maersk (Maersk) has experienced strong business and financial growth in the third quarter, with enhanced profitability across its Ocean, Logistics & Services, and Terminals segments over the past year.
On 21 October, Maersk updated its outlook for 2024, now anticipating full-year underlying EBIT of $5.2 to $5.7 billion (formerly $3 to $5 billion), citing the good quarter, healthy container market demand, and the ongoing Red Sea crisis.
Ocean’s profitability in Q3 2024 improved with better freight rates and strong volume growth, resulting in a 41 per cent revenue rise.
The network re-routing south of the Cape of Good Hope remained a major cost driver, affecting bunker consumption and total operating expenses. These cost constraints were fully compensated by effective operational performance, according to the shipping company , resulting in an EBIT rise of $2.9 billion and a margin of 25.5 per cent.
Logistics & Services witnessed an 11 per cent year-on-year (YoY) and 7.2 per cent sequential revenue growth in the third quarter, driven by higher product volumes.
Profitability also improved, with an EBIT of $200 million, an increase of $64 million YoY, driven principally by profitable development in Lead Logistics and Air, resulting in an EBIT margin of 5.1 per cent.
Terminals had substantial top-line growth, especially in North America. During the quarter, revenue per move increased to an all-time high due to increasing volumes, improved tariffs, and product mix.
Terminals had its highest EBITDA since Q1 2022 of $424 million, concluding the quarter with an ROIC (LTM) of 13 per cent.
As previously announced, on the back of strong Q3 results combined with strong container market demand and the continuation of the Red Sea/Gulf of Aden situation, Maersk expects global container market growth for the full year to be around 6 per cent (previously 4-6 per cent).
Recently, Maersk signed a long-term bio-methanol offtake deal with LONGi Green Energy Technology Co., Ltd.
