Copenhagen: A.P. Moller - Maersk (Maersk) delivered record results in Q2 2022. Revenue increased by 52pct. and earnings more than doubled compared to same quarter last year. Results were driven by continued exceptional market conditions and sustained momentum from the strategic transformation focused on integrated logistics. Based on the strong performance in first half of 2022, Maersk has upgraded its guidance for the full year 2022 and increased the current share buyback programme.

We delivered an exceptionally strong result for the second quarter and consequently recorded the 15th quarter in a row with year-on-year earnings improvements. We are pleased with our performance across the business in first half of 2022, which clearly demonstrates the progress and great work by the entire Maersk team, transforming the company towards becoming a global, integrated logistics company.

Søren Skou
CEO of A.P. Moller - Maersk
In Q2, revenue grew to USD 21.7bn, EBITDA and EBIT increased to USD 10.3bn and USD 9.0bn respectively, and free cash flow rose to USD 6.8bn. The Q2 net result came in at USD 8.6bn and USD 15.4bn for the first half of the year. Return on invested capital (ROIC) was at 62.5 pct. for the past 12 months.

The result was driven by strong contract rates in Ocean, rapid profitable growth in Logistics and continued solid performance in Terminals. Volumes in Ocean were softer as congestion continued and the war in Ukraine weighed on consumer confidence, particularly in Europe. However, in Logistics we grew volumes above the market as our Ocean customers continue to buy into our value proposition, resulting in organic revenue growth of 36pct., notching up the 6th quarter in a row of more than 30pct. organic growth.

Søren Skou
CEO of A.P. Moller - Maersk

In Ocean, revenue grew to USD 17.4bn and EBIT increased to USD 8.5bn over the second quarter. The higher freight rates were partly offset by 7.4pct. lower volumes and by higher fuel, handling, and network costs. Although spot rates have softened from their peak earlier in the year, the company continued to sign contracts at rates above previous year levels given strong demand and continuing global supply chain congestion.

During Q2, Maersk maintained its strong momentum in bringing integrated logistics solutions to customers. For the quarter, revenue in Logistics grew 61pct. to USD 3.5bn and EBIT increased to USD 234m mainly due to higher volumes from new customer wins and increased spending from existing customers. Maersk continued to invest in its logistics portfolio and capabilities; in Q2 the acquisitions of logistics specialist, Pilot Freight Services and the global air freight expert, Senator International were completed, and Maersk further strengthened its air freight offering by launching Maersk Air Cargo.

In Terminals, revenue grew to USD 1.1bn and EBIT increased to USD 316m, mainly driven by strong import demand in the United States and above market growth in Asia as well as higher storage income, which was however partly offset by higher costs.

Market situation

Global demand for logistics services continued to moderate across global supply chains in Q2 2022. Freight rates softened marginally over the quarter but remained at a high level historically as supply chain congestion increased across the globe. Global container volume declined by 2.3pct compared to Q2 2021 while global air cargo volumes (CTK) were 9.4pct lower in April/May. Geopolitical uncertainty and higher inflation via higher energy prices continued to weigh on consumer sentiment and growth expectations. Given this background, in 2022 global container demand is now expected to be at the lower end of the -1% to +1% forecasted range.

Guidance for 2022

As announced in a trading update August 2, for the full year 2022 Maersk anticipates an underlying EBITDA of around 37bn, an underlying EBIT of around 31bn and a free cash flow above USD 24bn. This is based on the strong performance in first half of 2022, and a gradual normalisation in Ocean taking place in the fourth quarter of 2022.

Based on the improved guidance, the Board of Directors has decided to increase the current share buyback programme by USD 500m annually from USD 2.5bn to USD 3.0bn for the years 2022-2025.

Financial highlights

Highlights Q2

Revenue

USD million 2022 Q2 2021 Q2
USD million
Ocean
2022 Q2
17,412
2021 Q2
11,072
USD million
Logistics & Services
2022 Q2
3,502
2021 Q2
2,168
USD million
Terminals
2022 Q2
1,124
2021 Q2
969
USD million
Towage & Maritime Services
2022 Q2
579
2021 Q2
529
USD million
Unallocated activities, eliminations, etc.
2022 Q2
-967
2021 Q2
-508
USD million
A.P. Moller - Maersk consolidated
2022 Q2
21,650
2021 Q2
14,230

EBITDA

USD million 2022 Q2 2021 Q2
USD million
Ocean
2022 Q2
9,598
2021 Q2
4,400
USD million
Logistics & Services
2022 Q2
337
2021 Q2
216
USD million
Terminals
2022 Q2
400
2021 Q2
370
USD million
Towage & Maritime Services
2022 Q2
81
2021 Q2
95
USD million
Unallocated activities, eliminations, etc.
2022 Q2
-89
2021 Q2
-17
USD million
A.P. Moller - Maersk consolidated
2022 Q2
10,327
2021 Q2
5,064

EBIT

USD million 2022 Q2 2021 Q2
USD million
Ocean
2022 Q2
8,526
2021 Q2
3,580
USD million
Logistics & Services
2022 Q2
234
2021 Q2
153
USD million
Terminals
2022 Q2
316
2021 Q2
302
USD million
Towage & Maritime Services
2022 Q2
16
2021 Q2
64
USD million
Unallocated activities, eliminations, etc.
2022 Q2
-104
2021 Q2
-15
USD million
A.P. Moller - Maersk consolidated
2022 Q2
8,988
2021 Q2
4,084

CAPEX

USD million 2022 Q2 2021 Q2
USD million
Ocean
2022 Q2
517
2021 Q2
313
USD million
Logistics & Services
2022 Q2
286
2021 Q2
36
USD million
Terminals
2022 Q2
105
2021 Q2
40
USD million
Towage & Maritime Services
2022 Q2
93
2021 Q2
56
USD million
Unallocated activities, eliminations, etc.
2022 Q2
7
2021 Q2
7
USD million
A.P. Moller - Maersk consolidated
2022 Q2
1,008
2021 Q2
452

Guidance 2022 - development

USD million New guidance
2 August
Previous guidance
26 April
Initial guidance
9 February
USD million
Underlying EBITDA - around
New guidance
2 August
37.0
Previous guidance
26 April
30.0
Initial guidance
9 February
24.0
USD million
Underlying EBIT - around
New guidance
2 August
31.0
Previous guidance
26 April
24.0
Initial guidance
9 February
19.0
USD million
Free cash flow (FCF) - above
New guidance
2 August
24.0
Previous guidance
26 April
19.0
Initial guidance
9 February
15.0

Underlying EBITDA is earnings before interest, taxes, depreciation and amortisation adjusted for restructuring and integration costs.

Underlying EBIT is operating profit before interest and taxes adjusted for restructuring and integration costs, net gains/losses from sale of non-current - assets and net impairment losses.

Sensitivity guidance

Financial performance for A.P. Moller - Maersk for 2022 depends on several factors and is subject to uncertainities 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 0.6bn
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 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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