A.P. Moller - Maersk (Maersk) successfully met its 2023 financial targets, reporting an underlying EBITDA of USD 9.8 billion. However, given the prevailing oversupply challenges and increased uncertainty in the industry, Maersk anticipates a wide-ranging underlying EBITDA for 2024, spanning between USD 1.0 billion and 6.0 billion.
Financial Performance Overview
Maersk's 2023 financial results aligned with the projected guidance, as the company reported revenues of USD 51.1 billion. Despite increased volumes across most products and stringent cost control measures, eroding freight rates in the Ocean sector impacted the EBIT margin, resulting in 7.7%. Ocean sector resilience was noted with strong schedule reliability and cost containment efforts mitigating supply-related challenges.
Logistics and Services faced revenue reduction due to destocking and lower rates, leading to a decline in profitability compared to 2022. Emphasizing cost management protected margins and reset the cost basis. Terminals maintained steady performance, achieving a Return on Invested Capital (ROIC) of 10.5%, surpassing mid-term targets.
2024 Financial Guidance
The 2024 financial guidance is anchored in the expectation of global container volume growth between 2.5% and 4.5%. Maersk aims to grow in line with the market but anticipates full materialization of oversupply challenges in the Ocean industry throughout the year. The duration and impact of the Red Sea disruption remain uncertain, influencing the guidance range. Front-loading is expected at the beginning of 2024.
