Copenhagen, Denmark – A.P. Moller – Maersk (Maersk) reports a second quarter of 2023 ahead of expectations, while the ongoing market normalisation continued through the quarter leading to lower volumes and lower rates. Revenue stood at USD 13.0bn compared to USD 21.7bn in Q2 2022 while profitability was strong at 12.4% although significantly lower compared to the extraordinarily strong Q2 2022. Reflecting the strong first half performance, Maersk raises its financial outlook and now expects underlying EBITDA of USD 9.5 - 11.0bn (previously USD 8.0 – 11.0bn), underlying EBIT of USD 3.5 - 5.0bn (previously USD 2.0 - 5.0bn) despite a weakened second half market outlook.

The Q2 result contributed to a strong first half of the year, where we responded to sharp changes in market conditions prompted by destocking and subdued growth environment following the pandemic fuelled years. Our decisive actions on cost containment together with our contract portfolio cushioned some of the effects of this market normalisation. Cost focus will continue to play a central role in dealing with a subdued market outlook that we expect to continue until end year. While we step this agenda further up, we are unwavering in our transformation and continue to invest in and deliver truly integrated logistics solutions to our customers and amplify their supply chain resilience for the uncertain times ahead.

Vincent Clerc
CEO of Maersk

Ocean revenue decreased to USD 8.7bn from USD 17.4bn driven by a decrease in freight rates and loaded volumes. While the volume and rate environment stabilized at a lower level during Q2, Ocean continued to be impacted by lower demand, driven by a significant inventory correction in particular in North America and Europe. A strong cost management allowed to partially offset the top line impact on financial performance in Ocean.

Revenue in Logistics & Services was USD 3.4bn compared to USD 3.5bn. The segment was also impacted by lower volumes due to the continued destocking and weaker consumer demand, as well as low rates. As in Ocean, market demand is expected to continue to be subdued as long as the inventory correction is ongoing.

Revenue in Terminals decreased to USD 950m from USD 1.1bn and was influenced by the normalisation of storage revenue and lower volumes amid lower consumer demand and less congestion in North America. Strong cost control contributed to a continued solid financial performance.

Financial guidance for 2023

The inventory correction observed since Q4 2022 appears to be prolonged and is now expected to last through year end. Based on the continued destocking, A.P. Moller – Maersk now sees global container volume growth in the range of -4% to -1% compared to -2.5% to +0.5% previously. Ocean expects to grow in-line with the market.

For the full-year 2023, A.P. Moller – Maersk raises its financial guidance as seen in the table below.

A.P. Moller – Maersk now expects CAPEX to be at the lower end of the previously communicated ranges of USD 9.0 - 10bn for 2022-2023 and USD 10.0 - 11.0bn for 2023-2024.

Guidance USDbn
Guidance
EBITDA Underlying
(Previously: 8.0-11.0)
USDbn
9.5-11.0
Guidance
EBIT Underlying
(Previously:2.0-5.0)
USDbn
3.5-5.0
Guidance
Free cash flow at least
(Previously:2.0)
USDbn
3.0
Guidance
CAPEX guidance 2022-2023
USDbn
9.0-10.0
Guidance
CAPEX guidance 2023-2024
USDbn
10.0-11.0

Cash distribution to shareholders

A total distribution of cash to shareholders of USD 2.4bn took place during Q2 2023 through dividend withholding taxes paid of USD 1.5bn and share buy-backs of USD 868m.

Financial highlights


Highlights Q2

Revenue

USD million 2023 Q2 2022 Q2
USD million
Ocean
2023 Q2
8,703
2022 Q2
17,412
USD million
Logistics & Services
2023 Q2
3,386
2022 Q2
3,502
USD million
Terminals
2023 Q2
950
2022 Q2
1,124
USD million
Towage & Maritime Services
2023 Q2
504
2022 Q2
579
USD million
Unallocated activities, eliminations, etc.
2023 Q2
-555
2022 Q2
-967
USD million
A.P. Moller - Maersk consolidated
2023 Q2
12,988
2022 Q2
21,650

EBITDA

USD million 2023 Q2 2022 Q2
USD million
Ocean
2023 Q2
2,259
2022 Q2
9,598
USD million
Logistics & Services
2023 Q2
311
2022 Q2
337
USD million
Terminals
2023 Q2
331
2022 Q2
400
USD million
Towage & Maritime Services
2023 Q2
59
2022 Q2
81
USD million
Unallocated activities, eliminations, etc.
2023 Q2
-55
2022 Q2
-89
USD million
A.P. Moller - Maersk consolidated
2023 Q2
2,905
2022 Q2
10,327

EBIT

USD million 2023 Q2 2022 Q2
USD million
Ocean
2023 Q2
1,205
2022 Q2
8,526
USD million
Logistics & Services
2023 Q2
115
2022 Q2
234
USD million
Terminals
2023 Q2
269
2022 Q2
316
USD million
Towage & Maritime Services
2023 Q2
71
2022 Q2
16
USD million
Unallocated activities, eliminations, etc.
2023 Q2
-53
2022 Q2
-104
USD million
A.P. Moller - Maersk consolidated
2023 Q2
1,607
2022 Q2
8,988

CAPEX

USD million 2023 Q2 2022 Q2
USD million
Ocean
2023 Q2
314
2022 Q2
517
USD million
Logistics & Services
2023 Q2
223
2022 Q2
286
USD million
Terminals
2023 Q2
97
2022 Q2
105
USD million
Towage & Maritime Services
2023 Q2
99
2022 Q2
93
USD million
Unallocated activities, eliminations, etc.
2023 Q2
5
2022 Q2
7
USD million
A.P. Moller - Maersk consolidated
2023 Q2
738
2022 Q2
1,008

Sensitivity guidance

Financial performance for A.P. Moller - Maersk for 2023 depends on several factors subject to uncertainties related to the given uncertain macroeconomic conditions, bunker fuel prices and freight rates. All else being equal, the sensitivities for 2023 for four key assumptions are listed below:

Factors Change

Effect on EBIT
(Rest of 2023)

Factors
Container freight rate
Change
+/- 100 USD/FFE

Effect on EBIT
(Rest of 2023)

+/- USD 0.6bn
Factors
Container freight volume
Change
+/- 100,000 FFE

Effect on EBIT
(Rest of 2023)

+/- USD 0.1bn
Factors
Bunker price (net of expected BAF coverage)
Change
+/- 100 USD/tonne

Effect on EBIT
(Rest of 2023)

+/- USD 0.2bn
Factors
Foreign exchange rate (net of hedges)
Change
+/- 10% change in USD

Effect on EBIT
(Rest of 2023)

+/- USD 0.1bn

About Maersk

A.P. Moller - Maersk is an integrated logistics company working to connect and simplify its customers’ supply chains. As a global leader in logistics services, the company operates in more than 130 countries and employs around 100,000 people. Maersk is aiming to reach net zero emissions by 2040 across the entire business with new technologies, new vessels, and low-emission fuels.

For more information, please contact:

Mikkel linnet profile
Mikkel Linnet
Head of Global Media Relations
+45 24821196
Morten Buttler profile
Morten Buttler
Senior Media Relations Advisor, Finance
+45 28148202

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