Maersk’s record breaking year ends on a muted note

eBlue Economy 09/02/2023Last Updated: 09/02/2023

1 minute read

Maersk CEO Vincent Clerc: “As we enter a year with a challenging macro-outlook and new types of uncertainties for our customers, we are determined to speed up our business transformation.”

In line with its earlier guidance, A.P. Moller – Maersk (Maersk) delivered a full-year 2022 revenue that was increased by 32% to $81.5 billion, while EBIT increased by 57% to $30.9 billion

“2022 was remarkable in more than one way. While we report the best financial result in the history of the company, we have also taken the partnerships with our customers to a new level by supporting their supply chains end to end during highly disruptive times,” said Maersk CEO Vincent Clerc. “As we enter a year with challenging macro-outlook and new types of uncertainties for our customers, we are determined to speed up our business transformation and increase our operational excellence to seize the unique opportunities in front of us.”

That business transformation has seen Maersk expand its integrated logistics capabilities by acquiring companies like Pilot, Senator and LF Logistics, and organically grow its logistics by more than 20%,

While Maersk’s full year earning hit a record, its fourth quarter results were an indicator that the party is winding down. While profit for the quarter was $5 billion, that was down by more than a billion compared with the prior year quarter’s $6.1 billion.

Maersk says results for the quarter “were mainly affected by lower volumes caused by a weakening customer demand which triggered an easing of congestions and operational bottlenecks. Sequentially, freight rates were down from the peak levels reached by mid-2022.”

GUIDANCE FOR 2023

Maersk’s 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. With 2023 global GDP growth expected to be muted and global ocean container market growth to be in a range of -2.5% to +0.5%, Maersk expects to grow in-line with the market.

Based on these assumptions, for the full year 2023, the company expects an underlying EBITDA of $8.0-11.0 billion, an underlying EBIT of $2.0-5.0 billion, and free cash flow (FCF) of at least $2.0 billion.

Much, much more in Maersk’s full reports, including details on its decarbonization goals and strategy/

Download Maersk’s fourth quarter report

Download Maersk’s full year 2022 report