A.P. Moller – Maersk has unveiled its financial performance for the first quarter of 2024, showcasing a notable revenue decline compared to the same period last year. The report, released recently, highlights a 13% year-over-year decrease in revenue, attributed primarily to challenges faced by its Ocean division.
The company’s press release accentuates a quarter that met expectations, marked by a robust recovery in earnings compared to the preceding quarter of 2023. This recovery, Maersk notes, was driven by a strong performance in its Terminals segment and the confluence of heightened demand coupled with the prolonged crisis in the Red Sea.
The revenue for Q1 totaled US$12.4 billion, a substantial decrease of US$1.9 billion from the previous year, mainly stemming from the Ocean division. However, there were notable increases of US$33 million and US$123 million in the Logistics & Services and Terminals segments, respectively.
Despite the revenue downturn, Maersk’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) saw a significant drop of US$2.4 billion to US$1.6 billion, driven largely by lower earnings from Ocean. Similarly, EBIT (earnings before interest and taxes) decreased by US$2.1 billion to US$177 million, although the performance of the Ocean division was partially offset by a notable increase of US$93 million in Terminals.
During the first quarter of 2024, Maersk disbursed a total of US$1.5 billion to shareholders through dividends amounting to US$1.0 billion and share buybacks totaling US$443 million.
Vincent Clerc, CEO of Maersk, expressed optimism about the company’s performance, citing a positive start to the year and an improved outlook for the coming quarters. However, he also highlighted concerns regarding the influx of new vessels, which could potentially pressure ocean markets in the future. Maersk remains committed to its cost agenda to mitigate disruptions and bolster resilience in the face of ongoing volatility.
