Shipping group A.P. Moller - Maersk has reported first-quarter earnings above expectations and lifted the lower end of its full-year profit guidance range, supported by higher demand and the diverting of vessels away from the Red Sea.
The company said that demand is moving towards the 'higher end of our market growth guidance', adding conditions in the Red Sea are 'stable'
This led to a recovery in the first quarter compared to the previous quarter but also improved the outlook for the coming quarters, it noted.
"However, we still anticipate the high number of new vessels being delivered during this and next year to eventually offset these factors and put the ocean markets under renewed pressure," Maersk CEO Vincent Clerc said in a statement.
EBITDA Expectations
Maersk said it now expects underlying earnings before interest, taxation, depreciation and amortisation (EBITDA) this year between $4 billion and $6 billion (€3.72 billion and €5.58 billion), compared with its previous guidance between $1 billion and $6 billion (€0.93 billion and €5.58 billion).
Earnings before interest, taxation, depreciation and amortisation (EBITDA) fell to $1.59 billion (€1.48 billion) in the quarter from $3.97 billion (€3.69 billion) a year earlier, beating analysts' expectations of $1.46 billion (€1.36 billion) in an LSEG poll.
Cost Agenda
"We therefore relentlessly continue to pursue our cost agenda with the aim of rolling back the disruption linked cost in Ocean and restoring margins in Logistics & Services," Clerc added.
"This work on cost, helped by our strong value proposition, is crucial in supporting our customers through the ongoing volatility and build a more resilient business."
Additional reporting by ESM
