Copenhagen: A.P. Moller - Maersk (Maersk) delivered record results for Q1 2022 across its businesses, driven by higher rates and strong long-term partnerships with customers seeking end-to-end supply chain support. Revenue was up 55pct. to USD 19.3bn, EBITDA more than doubled to USD 9.1bn and free cash flow increased to USD 6bn.

In Q1 we delivered the best earnings quarter ever in A.P. Moller - Maersk with growth across Ocean, Logistics and Terminals. The increased earnings are driven by freight rates and by contracts being signed at higher levels. While global supply chains remain under significant pressure, we continue to demonstrate superior ability to help customers overcome logistic challenges. In Logistics, we enjoyed strong demand for products and solutions across our portfolio leading to the 5th quarter in a row with organic growth of more than 30pct. while Terminals presented its best quarter ever.

Søren Skou
CEO of A.P. Moller - Maersk

In Ocean, revenue increased 64pct. to USD 15.6bn during Q1 as strong rates more than offset a 7pct. decline in volumes. Revenue for the full year is expected to continue to be strong as the increase in freight rates on our long-term contract portfolio will add approximately USD 10bn to revenue in 2022 compared to 2021. This will more than offset the significant increase in costs, which were up 21% in the first quarter given higher fuel costs and inflationary pressure on network and container handling costs.

In Q1, revenue in Logistics grew 41pct. to USD 2.9bn compared to same quarter last year as both existing and new customers continue to buy into the full value proposition of integrated solutions. At the same time Maersk continues to invest in acquisitions that add capabilities within technology and e-commerce and strengthen the portfolio such as Pilot Freight Services, which closed on 2 May 2022.

In Terminals, revenue increased to USD 1.1bn in Q1 compared to USD 915m last year and the return on invested capital (ROIC) ended on a record 12.5pct. before impairment in GPI of USD 485m following the exit of the Russian market. The process around the sale of GPI is ongoing. Results in Terminals are driven by higher storage income in NAM, improvement in revenue per move and a volume growth in the overall contracting market.

Market situation and guidance for 2022

Freight rates remained elevated in Q1 as Covid-19 and capacity shortages continued to disrupt the supply-side of the logistics industry. Global container demand declined by 1.2pct. compared to +8pct. in 2021 while global air cargo volumes increased by 2.9pct. Trade flow growth flattened from Far East to both North America and Europe. Russia’s invasion of Ukraine is having a negative impact on trade flows and consumer confidence in Europe. Given this background, global container demand is now expected to grow -1/+1pct, compared to an earlier expectation of 2-4pct.

As announced on 26 April 2022, Maersk anticipates an underlying EBITDA of around USD 30bn, an underlying EBIT of around USD 24bn and a free cash flow above USD 19bn for the full year of 2022. This is based on a strong first half of 2022 as well as higher contracted rates, while the normalisation in Ocean is still assumed to take place early in the second half of the year.

Financial highlights

Highlights Q1

Revenue

USD million 2022 Q1 2021 Q1
USD million
Ocean
2022 Q1
15,570
2021 Q1
9,478
USD million
Logistics & Services
2022 Q1
2,879
2021 Q1
2,045
USD million
Terminals
2022 Q1
1,131
2021 Q1
915
USD million
Towage & Maritime Services
2022 Q1
555
2021 Q1
523
USD million
Unallocated activities, eliminations, etc.
2022 Q1
-843
2021 Q1
-522
USD million
A.P. Moller - Maersk consolidated
2022 Q1
19,292
2021 Q1
12,439

EBITDA

USD million 2022 Q1 2021 Q1
USD million
Ocean
2022 Q1
8,214
2021 Q1
3,444
USD million
Logistics & Services
2022 Q1
319
2021 Q1
205
USD million
Terminals
2022 Q1
456
2021 Q1
323
USD million
Towage & Maritime Services
2022 Q1
79
2021 Q1
89
USD million
Unallocated activities, eliminations, etc.
2022 Q1
16
2021 Q1
-22
USD million
A.P. Moller - Maersk consolidated
2022 Q1
9,084
2021 Q1
4,039

EBIT

USD million 2022 Q1 2021 Q1
USD million
Ocean
2022 Q1
7,072
2021 Q1
2,700
USD million
Logistics & Services
2022 Q1
183
2021 Q1
139
USD million
Terminals
2022 Q1
-73
2021 Q1
239
USD million
Towage and Maritime Services
2022 Q1
69
2021 Q1
41
USD million
Unallocated activities, elimination, etc.
2022 Q1
22
2021 Q1
-22
USD million
A.P. Moller - Maersk consolidated
2022 Q1
7,273
2021 Q1
3,097

CAPEX

USD million 2022 Q1 2021 Q1
USD million
Ocean
2022 Q1
1,156
2021 Q1
193
USD million
Logistics & Services
2022 Q1
34
2021 Q1
21
USD million
Terminals
2022 Q1
80
2021 Q1
69
USD million
Towage and Maritime Services
2022 Q1
81
2021 Q1
49
USD million
Unallocated activities, eliminations, etc.
2022 Q1
3
2021 Q1
-3
USD million
A.P. Moller - Maersk consolidated
2022 Q1
1,354
2021 Q1
329

Sensitivity guidelines

Financial performance for A.P. Moller - Maersk for 2022 depends on several factors and is subject to uncertainties related to the situation in Russia and Ukraine, COVID-19, bunker fuel prices and freight rates, given the uncertain macroeconomic conditions.

All else being equal, the sensitivities for 2022 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 1.0bn
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 0.5bn
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 around 95,000 people.

For more information, please contact:

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

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