-
A.P. Moller-Maersk yet again raised its full-year guidance for 2021 as it achieved higher-than-expected financials in the fourth quarter
-
Ocean volumes decreased by 4% in the fourth quarter
-
Average freight rates improved by 80% in the fourth quarter year-over-year
A.P. Moller-Maersk has yet again revised upward its full-year guidance for 2021 as the Danish container shipping giant posted higher-than-expected financial figures in the fourth quarter.
In an e-mailed release, Maersk said it recognized preliminary unaudited revenue of US$18.5 billion in the last quarter of 2021, underlying earnings before interest, taxes, depreciation and amortization (EBITDA) of $8 billion and underlying earnings before interest and taxes (EBIT) of $6.8 billion.
Volumes in ocean decreased by 4%, but average freight rates improved by 80% in the fourth quarter of 2021 compared to the same period the previous year, it said.
“The strong result in the quarter reflects the continuation of the exceptional market situation within Ocean caused by the global disruptions to the supply chains, which have led to further increase in container freight rates,” the carrier said in its announcement dated January 14.
Given the strong performance in the fourth quarter, the preliminary full-year figures for 2021 will exceed Maersk’s previous guidance.
The carrier now expects an underlying EBITDA of $24 billion, up from the previous guidance of $22 billion to $23 billion issued in November last year. Underlying EBIT is now expected at $19.8 billion, higher than the previous $18 billion to $19 billion, and the free cash flow will be $16.4 billion, much more than the previous guidance minimum of $14.5 billion.
Maersk earlier said the fourth quarter of 2021 was shaping up to be one of the strongest peaks for the industry, with demand surpassing 2019 levels.
“Rate levels, already at all-time highs, are set to increase further in Q4. Most of the major trade lanes such as transpacific, Asia-Europe and transatlantic will be impacted,” it had said in a market update late last year.
Maersk last year adjusted upward its profit guidance a number of times as a result of sharp, unprecedented surges in freight rates.
The group said it will give a revised outlook for the first quarter of 2022 and full-year 2022 on February 9.
