Maersk raises year-on-year earnings forecasts to $ 30 billion, after rising first-quarter earnings.
It seems that the jump in freight rates in these unprecedented times for container shipping gave an extra boost and AP Moller – Maersk increased its profits for the whole year by $ 6 billion.
Revenue for the first three months of 2022 was $ 19.3 billion, with earnings before interest, taxes, depreciation and amortization (EBITDA) at $ 9.3 billion. Forecasts for the full year are revised upwards, with EBITDA estimated at about $ 30 billion compared to the previous $ 24 billion.
“The strong result is due to the continuation of the excellent market situation, which led to a 7% decrease in volume and an average increase of 71% in fares compared to the first quarter of 2021,” Maersk said.
The unrest continued worldwide in the first quarter, which was exacerbated by lockdowns in Chinese port cities of Shenzhen earlier this year and the start of the lockdown in Shanghai at the end of the quarter.
The Danish giant expects to maintain high fares with even higher interest rates and therefore increased its expected forecast for EBITDA for the whole year from $ 24 billion, the same as the record number of 2021, to an estimated $ 30 billion for 2022 “Current earnings guidance is still based on an ocean normalization hypothesis at the beginning of the second half of 2022,” the company said.
Maersk, however, estimates that there is a strong risk of a shrinking global container market this year. Global demand could fall by 1% or rise by 1%, he said, limiting an earlier growth forecast of 2% to 4%. Maersk will announce the results of its first quarter on May 4.
Source: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
