Copenhagen, Denmark – A.P. Moller-Maersk (Maersk) has reported outstanding results for the third quarter of 2024, demonstrating significant growth across its key business segments. The company’s strong performance was largely propelled by its Ocean division, with additional robust contributions from Logistics & Services and Terminals, reflecting an enduring resilience and adaptability in a rapidly evolving global shipping environment.
In its October 21 release, Maersk announced a consolidated revenue of USD 15.76 billion for Q3 2024, a substantial increase from USD 12.13 billion in Q3 2023. The Ocean segment largely supported this growth, which posted a 41% revenue increase, reaching USD 11.11 billion—up from USD 7.90 billion in the previous year. This remarkable surge highlights Maersk’s capacity to navigate global complexities and align with shifting market demands.
The Logistics & Services division showed steady growth, with revenue up 11% year-on-year to USD 3.89 billion, driven by increased volumes and expanded supply chain management and freight forwarding services. Meanwhile, the Terminals segment saw revenues reach USD 1.18 billion, up from USD 999 million, bolstered by higher volumes and improved tariffs. These results emphasize Maersk’s commitment to enhancing operational efficiency and customer service.
Financial Highlights
Maersk’s Q3 performance featured notable improvements across key financial metrics:
EBITDA: USD 4.80 billion, a sharp increase from USD 1.88 billion in Q3 2023, underscoring enhanced operational profitability.
EBIT: USD 3.31 billion, up from USD 538 million, marking a substantial turnaround in profitability across all divisions.
CAPEX: Total capital expenditures reached USD 941 million, up from USD 819 million last year, reflecting ongoing investments in fleet modernization and infrastructure development.
Revised 2024 Financial Outlook
Building on these Q3 results, Maersk has revised its full-year 2024 financial outlook:
Underlying EBIT: Now anticipated between USD 5.2 and 5.7 billion, an increase from the prior estimate of USD 3.0 to 5.0 billion.
Underlying EBITDA: Projected at USD 11.0 to 11.5 billion, revised from the earlier range of 9.0 to 11.0 billion.
Free Cash Flow: Expected to be USD 3.0 billion, an increase from the previous forecast of 2.0 billion or higher, enhancing financial flexibility for future investments.
Global Container Market Growth: Estimated at around 6% for 2024, up from the previous 4-6% forecast, indicating optimism in global trade dynamics.
Insights from Leadership
CEO Vincent Clerc commented on Maersk’s ability to support its customers amid high volatility and limited market visibility, stating, “We reaffirmed our commitment to profitable growth and operational progress, driving results across all business areas through rigorous focus on cost discipline, productivity gains, and efficient asset utilization.” Clerc emphasized the importance of adaptability, noting that Maersk successfully navigated challenges such as supply chain disruptions and rising demand fluctuations, solidifying its role as a leader in the logistics industry.
The Ocean division's profitability surge was chiefly driven by rising freight rates and increased volumes, despite ongoing network disruptions and escalating operating costs. Maersk’s ability to balance cost management with high service quality continues to be central to its strategy.
Future Outlook
Maersk recognizes that its financial performance will hinge on variables like macroeconomic trends, bunker fuel costs, and freight rates. The company has provided sensitivity guidance on key assumptions impacting EBIT for the rest of 2024, reinforcing the need for vigilance and agility in responding to evolving market dynamics.
About A.P. Moller-Maersk
A.P. Moller-Maersk is a global leader in integrated logistics, operating in over 130 countries with a workforce of approximately 100,000. Committed to achieving net-zero emissions by 2040, Maersk leverages advanced technologies, new vessel designs, and low-emission fuels to foster sustainability in logistics. This focus on environmental stewardship and innovation positions Maersk as a forward-thinking industry leader committed to meeting the future demands of supply chains while upholding responsible business practices today.
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