Maersk reported earnings growth for 2024 across all business units
On February 6, Maersk announced its 2024 results report, and specifically emphasized "strong performance."
According to the report, Maersk's full-year revenue of $55.48 billion, an increase of 8.6%, earnings before interest and tax (EBIT) of $6.05 billion, an increase of 65.2%, and all business units achieved profitable growth, which is also Maersk's "third best annual performance in history."
Maersk believes that the good performance is mainly due to the increase in container demand and higher freight rates.
He stressed that with three strong business segments - Marine, Logistics and Services, Terminals, and integrated products throughout the supply chain, Maersk is uniquely positioned to support customers in the face of geopolitical changes and supply chain strains.
Maersk said the profitability of the maritime business improved, helped by a sharp increase in freight rates and strong transport demand. Operating costs were flat compared to the same period in 2023, offsetting the increased costs and additional fuel consumption associated with the circumnavigation of the Cape of Good Hope.
Terminal revenue of $4.47 billion, up 16.2%, and EBIT of $1.33 billion, up 35.6%, were the best results ever achieved by the business, driven by throughput growth from route growth, better customer and product matching, and higher warehousing revenue.
As for the container shipping market outlook, Maersk expects that there may be a greater supply-demand imbalance in the market in 2025, as the delivery of new container ships continues to increase and the Red Sea route may reopen, but this imbalance is likely to be offset by supply-side drivers and strong market demand.
In addition, in light of the strong performance, Maersk also announced the launch of a share repurchase program totaling approximately $2 billion, to be executed over a 12-month period.
According to the report, Maersk's full-year revenue of $55.48 billion, an increase of 8.6%, earnings before interest and tax (EBIT) of $6.05 billion, an increase of 65.2%, and all business units achieved profitable growth, which is also Maersk's "third best annual performance in history."
Maersk believes that the good performance is mainly due to the increase in container demand and higher freight rates.
He stressed that with three strong business segments - Marine, Logistics and Services, Terminals, and integrated products throughout the supply chain, Maersk is uniquely positioned to support customers in the face of geopolitical changes and supply chain strains.
Maersk said the profitability of the maritime business improved, helped by a sharp increase in freight rates and strong transport demand. Operating costs were flat compared to the same period in 2023, offsetting the increased costs and additional fuel consumption associated with the circumnavigation of the Cape of Good Hope.
Terminal revenue of $4.47 billion, up 16.2%, and EBIT of $1.33 billion, up 35.6%, were the best results ever achieved by the business, driven by throughput growth from route growth, better customer and product matching, and higher warehousing revenue.
As for the container shipping market outlook, Maersk expects that there may be a greater supply-demand imbalance in the market in 2025, as the delivery of new container ships continues to increase and the Red Sea route may reopen, but this imbalance is likely to be offset by supply-side drivers and strong market demand.
In addition, in light of the strong performance, Maersk also announced the launch of a share repurchase program totaling approximately $2 billion, to be executed over a 12-month period.
