Maersk Q3 revenue at $22.8bn on higher freight rates

Danish carrier Maersk reported a 37 percent increase in revenue for Q32022 to $22.8 billion, EBITDA increased to $10.9 billion and EBIT increased to $9.5 billion.

Profit was $8.9 billion for Q3 and $24.2 billion for the first nine months, according to an official release.

Maersk has thus crossed 2021 revenue in the first three quarters of the current fiscal.

"Our third quarter result was another record and the 16th quarter in a row with year-on-year earnings growth," says Søren Skou, CEO, A.P.Moller-Maersk. "Ocean freight rates, which have driven the exceptional results we have delivered in 2022, were again up both year-on-year and compared to the second quarter. However, it is clear that freight rates have peaked and started to normalise during the quarter, driven by both decreasing demand and easing of supply chain congestion. As anticipated all year, earnings in Ocean will come down in the coming periods. Our overall transformation momentum remained very strong as we continue to grow our Logistics business rapidly. For the first time, revenue in logistics exceeded $4 billion in one quarter, and we expect to continue to outgrow the market in Logistics based on new customer wins."

In Ocean, revenue increased over the quarter to $18 billion and EBIT rose to $ 8.7 billion, driven by significantly higher freight rates on contract and shipment on routes from Asia to Europe and to North America, partly offset by a decrease in volumes and by higher costs related to bunker, container handling and network, the release added.

In Terminals, revenue increased to $1.1 billion and EBIT increased to $357 million, mainly driven by higher volumes and prices as well as the completion of the divestment of the Terminal's share in Global Ports Investments in Russia.

"With the war in Ukraine, an energy crisis in Europe, high inflation, and a looming global recession there are plenty of dark clouds on the horizon," Skou added. "This weighs on consumer purchasing power which in turn impacts global transportation and logistics demand. While we expect a slow-down of the global economy to lead to a softer market in Ocean, we will continue to pursue the growth opportunities within our Logistics business. As a trusted partner, we are ready to support our customers in rethinking their supply chain needs through what is likely to be a period of a more volatile business environment."

Outlook for 2022
Maersk has confirmed underlying EBITDA of around $37 billion, an underlying EBIT of around $31 billion and a free cash flow above $24 billion for 2022. "Given the unfolding economic slowdown, which is also expected to continue into the coming year, APMM has lowered its outlook for the growth of 2022 global container demand to between –2/-4% decline from previously the lower end of the +1-/1% range. Capex guidance for 2022-2023 remains unchanged at $9-10 billion.