Maersk reports 166% EBITDA, 30% revenue YoY growth in Q1 2021

May 5, 2021: A.P. Moller - Maersk reported strong earnings and growth momentum across all its businesses in ocean, port services and logistics in the first quarter of 2021.

Overall in Q1, EBITDA increased to $4 billion from $1.5 billion year on year and EBIT to $3.1 billion from $552 million compared to same quarter last year, while revenue improved by 30 percent to $12.4 billion. The results reflect the high volumes, which are up 5.7 percent, significant increases in freight rates of 35 percent and lower bunker fuel prices, leading to an EBITDA in ocean of $3.4 billion compared to $1.2 billion in Q1 2020, and an increase in revenue to $9.5 billion from $7.2 billion.

Logistics & services continued with strong growth momentum and revenue increase of 42 percent in Q1 to $2 billion, mainly driven by organic growth, but also with growth from the acquisitions of Performance Team and KGH Customs Services. EBITDA increased by 201 percent to $205 million compared to $68 million, and EBIT increased to $139 million compared to $29 million same quarter last year, partly driven by margin expansion.

Also, Gateway Terminals had a strong Q1 performance, with revenue increasing by 24 percent to $915 million from $740 million led by higher volumes and storage income, while EBITDA increased by 52 percent to $323 million from $213 million.

“The company benefitted from strong demand in a market still influenced by the pandemic and significant disruptions in global supply chains,” reads the release.

Strong demand coupled with significant operational challenges such as bottlenecks, lack of capacity and equipment shortage in global supply chains drove freight rates up significantly. At the same time, customers’ demand for truly integrated supply chains and simple, self-service solutions has never been more evident and this provides momentum, especially for logistics and digital solutions.

Søren Skou, CEO of A.P. Moller – Maersk, said, “A.P. Moller - Maersk delivered an exceptionally strong performance in Q1 2021 with record profit for the quarter. The high growth and profitability were driven by solid demand across ocean, logistics and Terminals. Strong demand led to bottlenecks and a lack of capacity and equipment, which drove up freight rates to record-high levels.”

“We remain focused on the long-term transformation of A.P. Moller - Maersk, prioritising customers’ demand for integrated logistics. Our integrator strategy was validated by strong customer support during Q1. As we change the conversations with customers from being short-term transactional to becoming long-term value-based, we lay the foundation for further, stable growth,” he said.

“We have continued to dedicate significant efforts to the safety of our employees and contribute to the societies we operate in, this quarter with a particular emphasis on India,” says Søren Skou and continues:

“Overall, we can be very satisfied with how the business performed this quarter. High profitability led to a ROIC of 15.7 percent, and our strong free cash flow gives us the opportunity to invest further in the transformation of the business, while accelerating the remaining part of the ongoing share buy-back programme and subsequently launch a new, additional share buy-back programme of approx. $5 billion over the coming two years.