• 2021 May 6 13:19

    Continued growth, high profit and additional share buy backs from A.P. Moller - Maersk in Q1 2021

    A.P. Moller - Maersk had an exceptionally strong start to the year, with strong earnings and growth momentum across all our businesses in ocean, port services and logistics. The company benefitted from strong demand in a market still influenced by the pandemic and significant disruptions in global supply chains.

    Strong demand coupled with significant operational challenges such as bottlenecks, lack of capacity and equipment shortage in global supply chains drove freight rates up significantly. At the same time, customers’ demand for truly integrated supply chains and simple, self-service solutions has never been more evident and this provides momentum, especially for logistics and digital solutions.

    “A.P. Moller - Maersk delivered an exceptionally strong performance in Q1 2021 with record profit for the quarter. The high growth and profitability were driven by solid demand across Ocean, Logistics and Terminals. Strong demand led to bottlenecks and a lack of capacity and equipment, which drove up freight rates to record-high levels,” says Søren Skou, CEO of A.P. Moller - Maersk, before adding:

    “We remain focused on the long-term transformation of A.P. Moller - Maersk, prioritising customers’ demand for integrated logistics. Our integrator strategy was validated by strong customer support during Q1. As we change the conversations with customers from being short-term transactional to becoming long-term value-based, we lay the foundation for further, stable growth.”

    Søren Skou
    CEO, A.P. Moller - Maersk
    Overall in Q1, EBITDA increased to USD 4bn from USD 1.5bn year on year and EBIT to USD 3.1bn from USD 552m compared to same quarter last year, while revenue improved by 30 pct. to USD 12.4bn. The results reflect the high volumes, which are up 5.7 pct., significant increases in freight rates of 35 pct. and lower bunker fuel prices, leading to an EBITDA in Ocean of USD 3.4bn compared to USD 1.2bn in Q1 2020, and an increase in revenue to USD 9.5bn from USD 7.2bn.

    Logistics & Services continued with strong growth momentum and revenue increase of 42 pct. in Q1 to USD 2bn, mainly driven by organic growth, but also with growth from the acquisitions of Performance Team and KGH Customs Services. EBITDA increased by 201 pct. to USD 205m compared to USD 68m, and EBIT increased to USD 139m compared to USD 29m same quarter last year, partly driven by margin expansion.

    Also, Gateway Terminals had a strong Q1 performance, with revenue increasing by 24 pct. to USD 915m from USD 740m led by higher volumes and storage income, while EBITDA increased by 52 pct. to USD 323m from USD 213m.

    The results came in a persistently difficult environment where countries are still contending with the effects of the pandemic.

    “We have continued to dedicate significant efforts to the safety of our employees and contribute to the societies we operate in, this quarter with a particular emphasis on India,” says Søren Skou and continues:

    “Overall, we can be very satisfied with how the business performed this quarter. High profitability led to a ROIC of 15.7 pct., and our strong free cash flow gives us the opportunity to invest further in the transformation of the business, while accelerating the remaining part of the ongoing share buy-back programme and subsequently launch a new, additional share buy-back programme of approx. USD 5bn over the coming two years.

    "We have continued to dedicate significant efforts to the safety of our employees and contribute to the societies we operate in, this quarter with a particular emphasis on India."

    Søren Skou
    CEO, A.P. Moller - Maersk
    Guidance for 2021
    Given the result in Q1 2021 and our expectation that the exceptional market situation will continue well into the fourth quarter of 2021, the full-year guidance has been revised upwards on 26 April 2021 to:

    Underlying EBITDA in the range of USD 13.0-15.0bn (previously USD 8.5-10.5bn) compared to USD 8.3bn in 2020
    Underlying EBIT in the range of USD 9.0-11.0bn (previously USD 4.3-6.3bn) compared to USD 4.2bn in 2020
    Free cash flow of minimum USD 7.0bn (previously above USD 3.5bn) compared to USD 4.6bn in 2020
    As part of the full-year guidance for 2021, A.P. Moller - Maersk now expects the current exceptional situation, with the demand surge leading to bottlenecks in the supply chain and equipment shortage, to continue well into the fourth quarter of 2021 versus previously expected to continue in Q1 and normalise thereafter. As expected, profitability in Q1 2021 was above Q4 2020.

    Ocean is still expected to grow in line with global container demand, which is now expected to grow by 5-7 pct. in 2021 (previously 3-5 pct. in 2021), primarily driven by the export volumes out of China to the USA, with the highest growth seen in the first half-year.

    For the years 2021-2022, the accumulated CAPEX is now expected to be around USD 7bn (previously USD 4.5-5.5bn).

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

    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 roughly 80,000 people.




2021 June 23

10:09 Albwardy Damen recognised as Best New Building Yard at ShipTek Awards 2021
09:55 Rosmorport completes work on preservation of structures at international maritime terminal under construction in Pionersky
09:32 Baltic Dry Index as of June 22
09:27 MABUX: Global bunker prices do not have any firm trend on Jun 23
09:19 Oil prices rise on reduction of US reserves

2021 June 22

18:37 K”Line participates in R&D and demonstration project for CO2 marine transportation
18:13 Finnish authorities actively using EMSA’s remotely piloted aircraft to support vital coast guard tasks over the Baltic Sea
18:01 Port of Gothenburg ready to enter into joint venture with Castellum
17:57 EMSA: EU ship traffic fell by 10% in 2020 due to the COVID-19 pandemic
17:34 Ecochlor completes all land-based and shipboard testing for EcoOne™ filterless BWMS
17:15 Huntington Ingalls Industries announces first international order for REMUS 300 UUVs
17:00 Deepwater Container Terminal secured by Polish Prime Minister
16:14 New vessel brings Furetank to the UN 2050 climate goal
15:50 RF Navy ships arrive in Saint-Petersburg for IMDS-2021
15:27 Optimarin expands BWTS service offering for smart maintenance
15:14 China ports container volume rises 15.2% in January - May 2021
14:52 South Korea’s first commercialised hydrogen electric boat officially unveiled
14:46 List of check points for importing of pesticides and agricultural chemicals approved by RF Prime Minister
14:24 METIS and Geislinger integrate vibrations into Neptune Lines vessel performance trial
14:01 Kongsberg Digital to deliver real-time drilling software Sitecom® to Brazilian major Ocyan
13:42 New vessel brings Furetank to the UN 2050 climate goal
13:10 The ice thrusters for the walk to work ice breaker have been delivered at shipyard Royal Niestern Sander
12:37 ClassNK expands scope of Innovation Endorsement
12:10 MOL starts research and development on large-scale liquefied CO2 carrier
11:43 One Sea white paper sets agenda for autonomous ship safety regulation
11:00 Wärtsilä chosen to power British Columbia’s most environmentally advanced escort tugs
10:41 Oil price exceeds $75 per barrel
10:22 ABB and Keppel O&M reach key autonomy milestone with remote vessel operation trial in Port of Singapore
10:09 Crowley takes delivery of tugboat with the most compact size in the U.S.
09:50 DCSA releases interface standards for the bill of lading with API definitions
09:40 Checkpoint across RF state border opened at Passenger Port Saint Petersburg
09:26 MABUX: Global bunker prices may demonstrate firm upward evolution on Jun.22
09:13 Baltic Dry Index as of June 21

2021 June 21

18:26 The Port of València to eliminate one million plastic bottles
17:37 Elcome expands presence in Europe
17:06 Jan De Nul Group installs 72 wind turbines for the 604 MW Kriegers Flak wind farm
16:59 ICC Greenland joins the Arctic Economic Council
16:12 DNV completes successful concept verification review of Odfjell Oceanwind’s WindGrid™ floating wind power system
16:08 USCG conducts medevac 10 miles north of Manasquan Inlet, New Jersey
14:58 Port of Gdynia reports record high handling of liquid fuel
14:29 PortNews offers new edition of its magazine
13:10 Stena Line takes delivery of Stena Scandica
12:46 Average spot market price for Russian M100 product fell to RUB 22,767 pmt
12:03 KENC wins contract for design noise mitigation deployment system
11:45 State Customer Directorate announces competition for construction of 18-MW multifunctional rescue ship
11:29 Robust growth puts Inchcape Liner Division in pole position
11:13 Damen reaches major milestone in fully - electric tug project
11:01 CMA CGM announces FAK rates from the Middle East Gulf to North Europe
10:29 India to host Multimodal Logistics - Transport Summit on 29-30 September 2021
10:10 Port of Gdynia throughput in January-April 2021 rose by 6.7% YoY
10:00 Port Authority of Jamaica’s new Damen Utility Vessel 3911 arrives
09:47 MABUX: bunker indexes may rise on June 21
09:21 Oil market opens week with growing prices
09:07 Baltic Dry Index as of June 18

2021 June 20

15:12 Puerto Rico Ports Authority welcomes JAXPORT leadership to San Juan
14:32 10 consecutive months of positive year-over-year growth in the Port of Savannah
13:24 Fincantieri Marinette Marine team celebrates the keel laying of the LCS 31
12:08 IMO adopts key mandatory measures to reduce ships’ carbon intensity; establishes ship rating system
11:02 USCG invistigating allision between USS Cod and Coast Guard Cutter Morro Bay

2021 June 19

15:37 BIMCO welcomes updated IMO Compendium to advance electronic data