Maersk revenue fell by more than a third
8.02.2024 - 15:49
Revenues of one of the largest shipping companies are down to $51 billion in 2023.
Victory of the transport and logistics group A.P. Moller-Maersk decreased by 37% for 2023 — to 51 billion dollars. This is stated in the company’s financial report.
The EBITDA indicator for the previous year fell by 3.8 times to $9.59 billion, EBIT by 7.9 times to $3.9 billion. EBIT profitability was 7.7%. This is attributed to a general decrease in ship freight rates.
In the delivery segment, the company notes a clear adherence to the arrival schedule and positive results of cost reduction measures. Financial performance in the liner segment remained strong, but deteriorated during the year.
In the logistics and services segments, the influx of new customers continued, but the reduction of warehouse stocks in early 2023, which was followed by lower rates, led to a drop in revenues in this segment.
According to Maersk’s forecast, serious oversupply problems in the maritime transport segment will fully materialize during 2024. Uncertainty about the duration and extent of the consequences of the current situation in the Red Sea remains high. In general, Maersk expects basic EBITDA at the level of 1-6 billion dollars this year.
The board of directors of Maersk has decided to initiate the separation of the towing sector due to the peculiarities of taxation in Denmark. The business of Svitzer A/S and its subsidiaries will be transferred to the new company Svitzer Group. Its shares will be distributed proportionately to Maersk shareholders. The subsidiary is expected to be officially admitted to trading on Nasdaq Copenhagen soon.
Due to the growing uncertainty in the market, the board of directors also decided to immediately suspend the share buyback program. Its renewal will be considered after the stabilization of the market situation in the segment of ocean transportation.
In addition, the board of directors proposed to pay a dividend for 2023 of $74.4 per share. This corresponds to 30% of underlying net profit in accordance with the company’s dividend policy.
Earlier USM wrote that Maersk and Hapag-Lloyd agreed to create a shipping alliance.
