A.P. Moller – Maersk (Maersk) delivered strong results in Q3 2022 with higher earnings in its three main businesses; Ocean, Logistics & Services and Terminals, compared to the same quarter last year. Revenue increased by 37%, and both EBITDA and EBIT increased around 60% compared to Q3 2021.
Continued momentum in the company’s strategic transformation, growth in Logistics, and Ocean contract rates above the previous year were the main drivers of improved performance, according to Maersk.
“Our third quarter result was another record and the 16th quarter in a row with year-on-year earnings growth, said Søren Skou, CEO of A.P. Moller – Maersk. “Ocean freight rates, which have driven the exceptional results we have delivered in 2022, were again up both year-on-year and compared to the second quarter.
“However, it is clear that freight rates have peaked and started to normalize during the quarter, driven by both decreasing demand and easing of supply chain congestion. As anticipated all year, earnings in Ocean will come down in the coming periods.
“Our overall transformation momentum remained very strong as we continue to grow our Logistics business rapidly. For the first time, revenue in Logistics exceeded USD 4bn in one quarter, and we expect to continue to outgrow the market in Logistics based on new customer wins.”
Skou went on to warn of an expected slowdown in the global economy leading to a softer Ocean market but said the company would continue to pursue opportunities to grow its Logistics business and help customers “in rethinking their supply chain needs through what is likely to be a period of a more volatile business environment.”
Revenue for Q3 increased to USD 22.8bn, EBITDA increased to USD 10.9bn and EBIT increased to USD 9.5bn. Profit was USD 8.9bn for Q3 and USD 24.2bn for the first nine months. Return on invested capital (ROIC) was at 66.6 pct. for the past 12 months.
In Ocean, revenue increased over the quarter to USD 18bn and EBIT rose to USD 8.7bn mainly driven by significantly higher freight rates on contract and shipment on routes from Asia to Europe and to North America, partly offset by a decrease in volumes and by higher costs related to bunker, container handling and network.
The company said freight and charter rates declined in Q3 2022 relative to the previous quarter as the expected normalisation gained momentum through the quarter. Global container volumes are estimated to have declined –3% year-on-year in Q3 while global air cargo volumes, measured in CTKs, dropped by 9% in July/August (IATA). As a result of slowing economic activity, global container demand is expected to contract between –2 and –4% in 2022.
In Terminals, revenue grew to USD 1.1bn and EBIT increased to USD 357m, mainly driven by higher volumes and prices as well as the completion of the divestment of its share in Global Ports Investments in Russia.