In the second quarter of 2021, A.P. Moller - Maersk continued to deliver strong growth and profitability, with record-breaking performance marking the 12th quarter of successive year-on-year earnings progress.

Revenue grew 58 pct. to USD 14.2bn in Q2 and EBIT increased almost five times to USD 4.1bn. The net result came in at USD 3.7bn in the second quarter, bringing the net result for the first half of 2021 to USD 6.5bn. Return on invested capital (ROIC) is now at 23,7 pct. for the past 12 months.

The strong results benefited both from the exceptional circumstances in Ocean, where congestions and bottlenecks continued to drive up rates, and from solid progress in executing on our strategic transformation where we kept a firm focus on our customers need for integrated solutions across their supply chains. I am pleased with the strategic progress we have made and the high value generation. We continue to build a higher quality Ocean business with more long-term contracts, a rapidly growing logistics business, and a value creating terminals business. Our exceptional earnings and high cash flow enable us to further accelerate our transformation, invest in growing our activities, also through acquisitions and at the same time return cash to shareholders. To that effect we also announced today the acquisitions of Visible SCM and B2C Europe which complements our existing supply chain offering and addresses our customers need for E-commerce logistics.

Søren Skou
CEO A.P. Moller - Maersk

In Ocean, profitability in Q2 was driven by revenue growth to USD 11.1bn from USD 6.6bn and EBIT increased to USD 3.6bn from USD 0.5bn. The growth came from a 15 pct. rebound in volumes and an increase in average freight rates of 59 pct., as both long-terms contracts rates with key clients increased and short-term contracts were still impacted by congestions and bottlenecks.

Logistics & Services delivered 38 pct. revenue growth to USD 2.2bn in Q2 with more than half coming from the top Ocean customers. Demand was strong across all product families and consequently EBIT more than tripled to USD 153m compared to USD 42m in the same quarter last year, leading to an EBIT margin of 7.1 pct.

Also, Gateway Terminals had a strong Q2 with volumes rebounding 24 pct. and persisting high storage income. Revenue increased to USD 969m from USD 723m last year, while EBIT doubled to USD 302m leading to an EBIT margin of 31.1 pct.

The outlook for Q3 is strong and we expect that the current momentum in Ocean will continue into Q4, also benefitting our Terminals business. Logistics & Services will continue its strong growth pattern for the rest of the year. As communicated on 2 August, we have upgraded our guidance for 2021 to an underlying EBITDA of USD 18-19.5bn, an EBIT of 14-15.5bn and a free cash flow expected to be minimum USD 11.5bn.

Søren Skou
CEO A.P. Moller - Maersk

Guidance for 2021

Ocean is still expected to grow in line with global container demand, which is now expected to grow 6-8 pct. in 2021 (previously 5-7 pct. in 2021), still primarily driven by the export volumes out of China to the USA.

For 2021-2022, the expectation for the accumulated CAPEX remains to be around USD 7bn.

Earnings in Q3 are expected to exceed the level for Q2 2021. Trading conditions for the quarters ahead are, however, still subject to a higher-than-normal volatility due to the temporary nature of current demand patterns, disruptions in the supply chains and equipment shortages.

Highlights and sensitivity guidance

Revenue

USD million 2021 2020
USD million
Ocean
2021
11,072
2020
6,570
USD million
Logistics & Services
2021
2,168
2020
1,569
USD million
Terminals & Towage
2021
1,148
2020
878
USD million
Manufacturing & Others
2021
344
2020
316
USD million
Unallocated activities, eliminations, etc.
2021
-502
2020
-336
USD million
A.P. Moller - Maersk consolidated
2021
14,230
2020
8,997

EBITDA

USD million 2021 2020
USD million
Ocean
2021
4,400
2020
1,357
USD million
Logistics & Services
2021
216
2020
97
USD million
Terminals & Towage
2021
423
2020
237
USD million
Manufacturing & Others
2021
41
2020
49
USD million
Unallocated activities, eliminations, etc.
2021
-16
2020
-43
USD million
A.P. Moller - Maersk consolidated
2021
5,064
2020
1,697

EBIT

USD million 2021 2020
USD million
Ocean
2021
3,580
2020
552
USD million
Logistics & Services
2021
153
2020
42
USD million
Terminals & Towage
2021
334
2020
200
USD million
Manufacturing & Others
2021
33
2020
-
USD million
Unallocated activities, eliminations, etc.
2021
-16
2020
-43
USD million
A.P. Moller - Maersk consolidated
2021
4,084
2020
751

CAPEX

USD million 2021 2020
USD million
Ocean
2021
313
2020
202
USD million
Logistics & Services
2021
36
2020
41
USD million
Terminals & Towage
2021
96
2020
112
USD million
Manufacturing & Others
2021
-
2020
7
USD million
Unallocated activities, eliminations, etc.
2021
7
2020
-
USD million
A.P. Moller - Maersk consolidated
2021
452
2020
362

Sensitivity guidelines

Financial performance for A.P. Moller - Maersk for 2021 depends on several factors and is subject to uncertainties related to COVID-19, bunker fuel prices and freight rates, given the uncertain macroeconomic conditions.

All else being equal, the sensitivities for 2021 for four key assumptions are listed in the table below:

Factors Change Effect on EBIT (midpoint of guidance) Rest of year
Factors
Container freight rate
Change
+/- 100 USD/FFE
Effect on EBIT (midpoint of guidance) Rest of year
+/- USD 0.7bn
Factors
Container freight volume
Change
+/- 100,000 FFE
Effect on EBIT (midpoint of guidance) Rest of year
+/- USD 0.2bn
Factors
Bunker price (net of expected BAF coverage)
Change
+/- 100 USD/tonne
Effect on EBIT (midpoint of guidance) Rest of year
+/- USD 0.2bn
Factors
Foreign exchange rate (net of hedges)
Change
+/- 10% change in USD
Effect on EBIT (midpoint of guidance) Rest of year
+/- USD 0.1bn

About A.P. Moller - Maersk

A.P. Moller - Maersk is an integrated container logistics company working to connect and simplify its customers’ supply chains. As the global leader in shipping services, the company operates in 130 countries and employs roughly 80,000 people.

For further information, please contact:

Signe Wagner - Head of External Relations
Signe Wagner
Head of Media Relations
+45 2977 1815

Anything you need, we’re here to help

Solutions

Logistics solutions

We meet customer needs from one end of the supply chain to the other.
Headset

Contact us

Our dedicated team of experts are here for you.
Find Prices

Ready to ship?

Look up rates for new shipments and inland tariffs.
Industry Insights

Sign up to our newsletter

To provide you with the right tools and the most relevant information for you to best manage your supply chain, please sign-up to our bi-weekly newsletter on global logistics.