Copenhagen: A.P. Moller – Maersk (Maersk) reports a first quarter of 2023 in line with expectations. Continued destocking and easing of congestions implied lower volumes across all segments. Revenue declined by 26% to USD 14.2bn from USD 19.3bn. EBITDA decreased to USD 4.0bn from USD 9.1bn, and EBIT to USD 2.3bn from USD 7.3bn. The full-year guidance remains unchanged, with Q1 expected to be the strongest quarter of the year.

We delivered a solid financial performance in a challenging market with lower demand caused by a continued destocking. Visibility remains low for the remainder of the year and moving through this market normalisation, we remain focused on proactively managing costs. As we adjust to a radically changed business environment, we continue to support our customers in addressing their supply chain challenges. We are pleased to note that customers continue to value the integrated logistics solutions and close partnership we provide.

Vincent Clerc
CEO of Maersk

Ocean revenue decreased by USD 5.7bn to USD 9.9bn. Profitability for the quarter was significantly lower compared to Q1 2022, primarily due to lower freight rates and volumes, as demand softened. However, proactive cost containment measures have been successful, and the Ocean contract negotiation season is proceeding in line with expectations.

In Logistics & Services, revenue grew 21% to USD 3.5bn driven by the consolidation of acquisitions. Organically, Q1 was affected by lower volumes caused by inventory corrections, especially with North American and European retailers, which was partially offset by new commercial wins. Additionally, underlying business performance was impacted by lower rates in Air Freight and weaker demand in eCommerce.

In Terminals, the top line was affected by lower volumes and storage income, both a factor of lower demand and the release of port congestion. Revenue in Terminals decreased to USD 876m from USD 1.1bn, but strong cost control contributed to continued solid financial performance in Terminals.

Q1 was marked by continued destocking in Europe and especially North America. While it is difficult to predict the exact timing, Maersk expects volumes to gradually pick up in the second half of the year.

Guidance for 2023

Guidance remains unchanged and is still based on the expectation that inventory correction will be complete by the end of H1, leading to a more balanced demand environment, that 2023 global GDP growth remains muted, and that the global ocean container market will grow in a range of -2.5% to +0.5%. Ocean expects to grow in line with market.

In Q1 2023, A.P. Moller – Maersk recognised USD 374m of the previously communicated USD 450m impairment and restructuring charge for the A.P. Moller – Maersk brands.

Guidance USDbn
Guidance
EBITDA Underlying
USDbn
8.0-11.0
Guidance
EBIT Underlying
USDbn
2.0-5.0
Guidance
Free cash flow at least
USDbn
2.0
Guidance
CAPEX guidance, maintained 2022-2023
USDbn
9.0-10.0
Guidance
CAPEX guidance 2023-2024
USDbn
10.0-11.0

Cash distribution to shareholders

A total distribution of cash to shareholders of USD 10.1bn took place during Q1 2023 through dividends paid of USD 9.4bn and share buy-backs of USD 718m.

Financial highlights

Highlights Q1

Revenue

USD million 2023 Q1 2022 Q1
USD million
Ocean
2023 Q1
9,873
2022 Q1
15,570
USD million
Logistics & Services
2023 Q1
3,471
2022 Q1
2,879
USD million
Terminals
2023 Q1
876
2022 Q1

1,131

USD million
Towage & Maritime Services
2023 Q1

602

2022 Q1

555

USD million
Unallocated activities, eliminations, etc.
2023 Q1
-615
2022 Q1
-843
USD million
A.P. Moller - Maersk consolidated
2023 Q1
14,207
2022 Q1
19,292

EBITDA

USD million 2023 Q1 2022 Q1
USD million
Ocean
2023 Q1
3,352
2022 Q1
8,214
USD million
Logistics & Services
2023 Q1
316
2022 Q1

319

USD million
Terminals
2023 Q1

291

2022 Q1

456

USD million
Towage & Maritime Services
2023 Q1
83
2022 Q1

79

USD million
Unallocated activities, eliminations, etc.
2023 Q1

-73

2022 Q1
16
USD million
A.P. Moller - Maersk consolidated
2023 Q1
3,969
2022 Q1

9,084

EBIT

USD million 2023 Q1 2022 Q1
USD million
Ocean
2023 Q1
1,969
2022 Q1
7,072
USD million
Logistics & Services
2023 Q1

135

2022 Q1
183
USD million
Terminals
2023 Q1
207
2022 Q1

-73

USD million
Towage & Maritime Services
2023 Q1

85

2022 Q1

69

USD million
Unallocated activities, eliminations, etc.
2023 Q1

-70

2022 Q1
22
USD million
A.P. Moller - Maersk consolidated
2023 Q1
2,326
2022 Q1

7,273

CAPEX

USD million 2023 Q1 2022 Q1
USD million
Ocean
2023 Q1
538
2022 Q1

1,156

USD million
Logistics & Services
2023 Q1

128

2022 Q1

34

USD million
Terminals
2023 Q1
111
2022 Q1

80

USD million
Towage & Maritime Services
2023 Q1

64

2022 Q1

81

USD million
Unallocated activities, eliminations, etc.
2023 Q1

-3

2022 Q1

3

USD million
A.P. Moller - Maersk consolidated
2023 Q1

838

2022 Q1

1,354

Sensitivity guidance

Financial performance for A.P. Moller - Maersk for 2023 depends on several factors subject to uncertainities related to the given the uncertain macroeconomic conditions, bunker fuel prices and freight rates. All else being equal, the sensitivities for 2023 for four key assumptions are listed below:

Factors Change

Effect on EBIT
(Rest of 2023)

Factors
Container freight rate
Change
+/- 100 USD/FFE

Effect on EBIT
(Rest of 2023)

+/- USD 0.9bn
Factors
Container freight volume
Change
+/- 100,000 FFE

Effect on EBIT
(Rest of 2023)

+/- USD 0.1bn
Factors
Bunker price (net of expected BAF coverage)
Change
+/- 100 USD/tonne

Effect on EBIT
(Rest of 2023)

+/- USD 0.3bn
Factors
Foreign exchange rate (net of hedges)
Change
+/- 10% change in USD

Effect on EBIT
(Rest of 2023)

+/- USD 0.2bn

About A.P. Moller - Maersk

A.P. Moller - Maersk is an integrated logistics company working to connect and simplify its customers’ supply chains. As a global leader in shipping services, the company operates in more than 130 countries and employs over 110,000 people world-wide. Maersk is aiming to reach net zero emissions by 2040 across the entire business with new technologies, new vessels, and green fuels.

For more information, please contact:

Mikkel linnet profile
Mikkel Linnet
Head of Global Media Relations
+45 24821196
Morten Buttler profile
Morten Buttler
Senior Press Officer – Financial Reporting and Energy Transition
+45 28148202

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