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A.P. Moller-Maersk upgraded its underlying operating income (EBITDA) projection for 2024 to $9 billion to $11 billion from $7 billion to $9 billion
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This is on account of expected robust container market demand and despite the supply chain disruption caused by the still volatile Red Sea situation
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The Danish company reported $12.8 billion in unaudited revenues for the second quarter of 2024
A.P. Moller-Maersk upgraded its underlying operating income (Earnings Before Interest, Taxes, Depreciation and Amortization) projection for 2024 to $9 billion to $11 billion from $7 billion to $9 billion, the company said in a statement.
This is on account of expected robust container market demand and despite the supply chain disruption caused by the still volatile Red Sea situation, which is expected to last until yearend.
EBIT for the full year has also been projected upward to $3 billion to $5 billion from $1 billion to $3 billion.
Full-year free cash flow of at least $2 billion is expected against the previous at least $1 billion projection.
The global container market volume growth for 2024 has also been revised upward to 4%-6% (previously towards the upper end of 2.5-4.5%), Maersk said.
The lack of clarity of supply and demand in the fourth quarter means trading conditions will remain, subject to higher-than-normal volatility because of the Red Sea situation.
For the second quarter of 2024, the Danish company reported $12.8 billion in unaudited revenues, underlying EBITDA of $2.1 billion, and underlying EBIT of $756 million (against the reported EBIT of $963 million) for the period.
According to its website, A.P. Moller-Maersk operates in more than 130 countries and employs around 100,000 people. The logistics services company targets to achieve net zero emissions by 2040 across the entire business with new technologies, new vessels, and green fuels.
READ: Coming months challenging for shipping, says Maersk CEO
