Second quarter sees logistics giant more than double year-on-year earnings while revenue soars 52 per cent
AP Moller–Maersk has said that it delivered record results in the second quarter (Q2) of 2022, with revenue increasing by 52 per cent and earnings more than doubling compared with same quarter last year.
According to Maersk, results were driven by ”continued exceptional market conditions” and ”sustained momentum from the strategic transformation focused on integrated logistics”.
Based on the strong performance in first half of 2022, Maersk upgraded its guidance for the full year 2022.
”We delivered an exceptionally strong result for the second quarter and consequently recorded the 15th quarter in a row with year-on-year earnings improvements,” said Søren Skou, chief executive at Maersk.
”We are pleased with our performance across the business in first half of 2022, which clearly demonstrates the progress and great work by the entire Maersk team, transforming the company towards becoming a global, integrated logistics company.”
Revenue for the quarter grew to US$21.7bn from last year’s US$14.2bn, while EBITDA and EBIT increased to US$10.3bn and US$9bn respectively.
Maersk’s Q2 net result came in at US$8.6bn, and US$15.4bn for the first half of the year.
”The result was driven by strong contract rates in ocean, rapid profitable growth in logistics and continued solid performance in terminals,” Skou outlined.
”Volumes in ocean were softer as congestion continued and the war in Ukraine weighed on consumer confidence, particularly in Europe,” he said. “However, in logistics we grew volumes above the market as our ocean customers continue to buy into our value proposition, resulting in organic revenue growth of 36 per cent – notching up the sixth quarter in a row of more than 30 per cent organic growth.”
The group explained that global demand for logistics services continued to moderate across global supply chains in Q2 2022.
Freight rates softened marginally over the quarter but remained at a high level historically as supply chain congestion increased across the globe, while geopolitical uncertainty and higher inflation via higher energy prices ”continued to weigh on consumer sentiment and growth expectations”.
For the full year 2022 Maersk said it was anticipating an underlying EBITDA of around US$37bn, an underlying EBIT of around US$31bn and a free cash flow above US$24bn.
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