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Maersk ups full year profit forecast to $30bn

Photo: Marcus Hand Maersk flag flying at its headquarters in Copenhagen
As would seem to have become a quarterly tradition in these unprecedented times for container shipping AP Moller – Maersk has upped its full year profit guidance by a hefty $6bn.

Following a pattern of revealing its expected financial result a few days before it releases the final result Maersk said on Tuesday to report an EBITDA of $9.3bn with an underlying EBIT of $7.9bn for Q1 of 2022. Revenues are expected at $19.3bn for the three-month period.

“The strong result is driven by the continuation of the exceptional market situation within Ocean, which has led to a 7% decline in volumes and an average 71% increase in freight rates compared to Q1 2021,” Maersk said.

Disruption has continued globally in Q1 exacerbated by lockdowns in the Chinese port cities of Shenzhen earlier in the period, and the start of a lockdown in Shanghai towards the end.

The Danish giant is expecting more of the same in Q2 with higher contract rates and has therefore increased its expected full year EBITDA forecast from $24bn, the same as the record 2021 number, to an estimated $30bn for 2022.

“The current earnings guidance is still based on an assumption of normalisation in ocean early in the second half of 2022,” the company said.

Increased profitability is expected this year despite Maersk having revised its outlook for global container trade growth to negative 1% - positive 1%, compared to 2-4% growth previously.

TAGS: Europe Maersk