Maersk raises full-year 2022 outlook after strong Q1 results

Container ship of Maersk Line (Image: Shutterstock)

A.P. Møller - Maersk delivered financial results for the first quarter of 2022 that beat previous expectations with revenue of $19.3 billion, underlying EBITDA (earnings before interest, taxes, and amortization) of 9, $2 billion and basic EBIT (earnings before interest and taxes) of $7.9 billion.

The Danish carrier said in a statement: “The strong result is driven by the continuation of the exceptional market situation within Ocean, which has led to a 7% decline in volumes and an average 71% increase in freight rates compared to Q1 2021”.

Due to strong Q1 results, Maersk revised up its full-year profit target, as it expects the current market situation to continue in Q2 combined with higher contracted freight rates.

Basic EBITDA is now projected at around $30 billion, up about $6 billion, baseline EBIT projected around $24 billion, up about $5 billion, and free cash flow over $19 billion, up about $4 USD billion.

Maersk said that the current profit target is still based on the assumption of normalization of the shipping segment in the second half of 2022.

Based on Q1 volume performance, the company has revised down its global container shipping demand growth outlook from 2-4% to -1/+ 1%.

See more:

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• Maersk prepares to temporarily suspend shipping bookings to and from Russia
• Maersk acquires Pilot Freight Services for $1.7 billion
• Maersk opens a new service connecting Vietnam, China with the US East Coast

Source: Phaata.com (According to ContainerNews)

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