Maersk expects low ’24 earnings

By Aya Anwar On Feb 8, 2024

Maersk said on Thursday that it expects 2024 earnings to be significantly lower than last year’s level due to an excess of container vessels, although the impact of the Red Sea disruption is still unclear.

The company had reported fourth-quarter profits that were below expectations. Its EBITDA fell to $839 million in the fourth quarter from $6.54 billion a year earlier, lagging analysts’ expectations of $1.13 billion.

The Danish shipping company stated that, as opposed to the $9.6 billion achieved last year, it anticipates underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) of between $1 billion and $6 billion this year.

“High uncertainty remains around the duration and degree of the Red Sea disruption with the duration from one quarter to full year reflected in the guidance range,” the company added in the statement.

CEO Vincent Clerc said those disruptions in no way resembled what happened to container shipping during in the times of the pandemic and would not be a major boost for the company.

“The current market remains one of robust volumes, but while the Red Sea crisis has caused immediate capacity constraints and a temporary increase in rates, eventually the oversupply in shipping capacity will lead to price pressure and impact our results.” Vincent Clerc, CEO of A.P. Moller – Maersk, said.