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A.P. Moller – Maersk presents a record Q3

[ November 17, 2021   //   ]

A.P. Moller – Maersk delivered record earnings in Q3, 2021. Revenue grew 68% to $16.6 billion in Q3, EBIT was up almost five times to $ 5.9 billion and EBITDA tripled to $6.9 billion. Return on invested capital (ROIC) increased to 34.5% for the past 12 months.
“In the ongoing exceptional market situation, with high demand in the US and global disruptions to the supply chains, we continued to increase capacity and expand our offerings to keep cargo moving for our customers,” said Søren Skou, CEO of A.P. Moller – Maersk. “Our integrator strategy is key to supporting our customers’ end-to-end logistics needs by designing a more stable Ocean business, strongly growing our logistics offering and relying on automated and efficient terminal.”
In Ocean, results in Q3 were driven by high freight rates in an exceptional market situation with revenue almost doubling to $13.1 billion from $7.1 billion. EBITDA increased by $4.4 billion to $6.3 billion and EBIT improved by $4.4 billion to $5.3 billion. To further guarantee reliable transportation, the share of long-term contracts was further increased, now accounting for 64% of long-haul volumes compared to 50% a year ago.
Logistics & Services continued the positive momentum with revenue increasing 38%. to $2.6 billion whereof 33% was organic. The growth was driven by strong activity increase across all products and strong commercial synergies to Top 200 Ocean customers. EBIT increased to $194 million from $100 million in same quarter last year and with an EBIT margin of 7.5% well ahead of our mid-term target of above 6 %.
Gateway Terminals also had a strong Q3 with revenue growing to $1 billion in Q3 from $816 million last year as volumes increased by 9.6% mainly coming from North America, Latin America and Asia as opening times were expanded and capacity utilization increased. Together with underlying efficiency improvements, Terminals achieved a ROIC of 10%.
A.P. Moller – Maersk reiterates the guidance for the full-year as announced on Sept. 16, 2021 with an underlying EBITDA in the range of $22 – 23 billion, an underlying EBIT in the range of $18 – 19bn and a free cash flow of minimum $14.5 billion.
Ocean is now expected to grow below the global container demand, which is now expected to grow 7-9% in 2021 (previously 6-8% in 2021), subject to high uncertainties related to the current congestion and network disruption.
For 2021-2022, the expectation for the accumulated CAPEX remains unchanged at around $7 billion.
The current trading conditions are still subject to a higher-than-normal uncertainty due to the temporary nature of current demand patterns, disruptions in the supply chains. However, current conditions are expected to continue at least into the first quarter of 2022, resulting in an EBITDA for Q1 2022 in line with Q4 2021.

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