Maersk raises forecast as disruptions lift freight rates

[COPENHAGEN] A. P. Moller-Maersk raised its profit forecast for 2021 as global disruptions in supply lines are boosting the rates shipping lines can charge their customers.

Maersk, the world's largest container line per owned vessels, said it probably generated underlying earnings before interest, taxes, depreciation, and amortisation of US$24 billion last year, said a statement. That level marks an increase from a November prediction of US$22 billion to US$23 billion. The company will publish its full 2021 report on Feb 9.

The container shipping industry had its most profitable year in 2021 as pandemic-driven demand for consumer goods strains capacity on vessels. Freight rates out of Shanghai have jumped about five-fold over the last 18 months.

Maersk's result "reflects the continuation of the exceptional market situation within Ocean caused by the global disruptions to the supply chains, which have led to further increase in container freight rates," the Copenhagen-based company said.

The shares were little changed in the Danish capital, trading down 1.8 per cent as of 10.44 am, the same level as before the announcement. The stock jumped 72 per cent last year, the best annual performance since 2003.

These were some of the other highlights of Maersk's preliminary unaudited financials in Friday's statement: Revenue was US$18.5 billion, underlying Ebitda US$8 billion, and underlying Ebit US$6.8 billion in Q4.

Volumes in Maersk's ocean business decreased by 4 per cent while freight rates jumped 80 per cent in Q4.

Underlying Ebit amounted to US$19.8 billion in 2021, and full-year free cash flow was US$16.4 billion.

BLOOMBERG