A. P. Moller – Maersk reports strong results for 2022.

Highlights

  • In 2022, A.P. Moller – Maersk (Maersk) delivered extraordinary financial performance in line with full-year guidance; Revenue increased by 32% to USD 81.5bn, and EBIT increased 57% to USD 30.9bn
  • Maersk has accelerated its business transformation, expanded the integrated logistics capabilities through acquired companies like Pilot, Senator and LF Logistics, and organically grown Logistics with more than 20%
  • Maersk has defined precise roadmaps to reach its commitment to decarbonize logistics across all transport modes. 70% of the top 200 customers have set carbon goals and supporting them in reaching these goals is core to Maersk’s ESG strategy
  • While the slow-down of the global economy will lead to a softer market in particular in Ocean, Maersk will continue to pursue the growth opportunities within the Logistics and Terminals businesses
  • In this context, Maersk gives 2023 full year EBIT guidance of USD 2-5bn

Copenhagen – 2022 was an exceptionally strong year for Maersk. The unprecedented financial results were driven by solid performance across all businesses during the abnormal market conditions in the first part of the year. As congestions eased and declining consumer demand led to a significant de-stocking in all segments, the expected normalization of the Ocean market kicked in during the final stretch of year.

In 2022, Ocean delivered the strongest result on record due to the high freight rates and strong demand, particularly in the first half of the year. Ocean revenue was up 33%. Throughout the year, Ocean continued to deliver on the strategic transformation, maintaining a stable level of long-term contracts. Ocean continued to improve on delivery performance over the year as congestion eased and was able to maintain strong margins due to the contractual nature of its customer relationship.

In Logistics & Services, revenue increased by 47%, with an organic contribution of 21%. The organic revenue growth came primarily from top 200 customers as the business continues to develop integrated solutions to meet end to end supply chain needs. Growth was particularly strong in warehousing where the footprint more than doubled to 7.1m sqm with the acquisition of LF Logistics alone adding 198 warehouses or 3.1m sqm.

In Terminals, EBIT adjusted for the Russia exit reached a record of USD 1.2bn, supported by solid volumes growth and high congestion related storage income. Based on a combination of tariff increases and efficiencies the impact of high global inflation has been mitigated.

Dividends
The Board of Directors proposes a dividend to the shareholders of DKK 4,300 per share of DKK 1,000 (DKK 2,500 per share of DKK 1,000 previous year). The proposed dividend payment represents a dividend yield of 27.5% (10.7% previous year) based on the Maersk B share’s closing price of DKK 15,620 as of 30 December 2022 and 37.5% of net underlying profit. Payment is expected to take place on 31 March 2023 after the Annual General Meeting.

Guidance for 2023
Guidance for 2023 is based on the expectation that inventory correction will be complete by the end of the first half leading to a more balanced demand environment. 2023 global GDP growth is expected to be muted and global ocean container market growth to be in a range of -2.5% to +0.5%. A.P. Moller-Maersk expects to grow in-line with the market.

Based on these assumptions, for the full year 2023, A.P. Moller-Maersk expects an underlying EBITDA of USD 8.0-11.0bn, an underlying EBIT of USD 2.0-5.0bn, and free cash flow (FCF) of at least USD 2.0bn. The CAPEX guidance for 2022-2023 of USD 9.0-10.0bn is maintained. For 2023-2024 the expectation for accumulated CAPEX is USD 10.0-11.0bn, led by investment in our integrator strategy, technology and decarbonisation. Without impacting the financial guidance and in conjunction with the restructuring of our brands an impairment and restructuring charge of USD 450m is expected in Q1.

Sensitivity guidance

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

Factors Change Effect on EBIT (Full year 2023)
Container freight rate
+/- 100 USD/FFE
+/- USD 1.2bn
Container freight volume
+/- 100,000 FFE
+/- USD 0.1bn
Bunker price (net of expected BAF coverage)
+/- 100 USD/tonne
+/- USD 0.4bn
Foreign exchange rate (net of hedges)
+/- 10% change in USD
+/- USD 0.2bn
About A.P. Moller – Maersk

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

By Maersk. Financial Results. 08 February 2023.
Source: Maersk. https://www.maersk.com/news/articles/2023/02/08/apmm-reports-strong-results-for-2022. 19 February 2023.

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