COPENHAGEN’s A.P. Moller – Maersk has reported strong financial results for 2024 with growth across all segments and significantly improved profitability with EBIT increasing 65% to USD 6.5 billion.
In its 2024 annual report released overnight in Europe the company said results were driven by higher container demand and elevated freight rates in Ocean, top line and volume growth in Terminals and solid improvements in most Logistics & Services products.
The company’s full-year revenue hit USD 55.5 billion, an 8.6% increase on 2023, while its EBIT nearly doubled, to reach USD 6.5 billion, giving an EBIT margin of 11.5%, compared with 2023’s 7.8% and EBIT of USD 3.9 billion.
Given the strong results and the strength of the balance sheet, the Board of Directors proposes a dividend of DKK 1,120/share and also separately announced the initiation of a share buy-back programme of up to around USD 2 billion to be executed over a period of 12 months.
“Our ability to navigate shifting circumstances and ensure steady supply chains for our customers was put to the test throughout 2024,” A.P. Moller-Maersk CEO Vincent Clerc said.
“Our efforts were rewarded with record-high customer satisfaction. We successfully capitalized on increased demand while enhancing productivity and rigorously managing costs – all of which contributed to our strong financial performance.
“With three strong businesses – Ocean, Logistics & Services, and Terminals – plus integrated offerings across the supply chain, we are uniquely positioned to support our customers in an era where geopolitical changes and disruptions continue to reinforce the need for resilient supply chains,” Mr Clerc said.
Profitability in Ocean improved compared to the previous year supported by a significant increase in freight rates reflecting the situation in the Red Sea and strong volume demand. High utilization and cost discipline ensured that Ocean operations were streamlined and able to tackle uncertainties. Operational costs were stable year-on-year, offsetting the increased costs and additional bunker consumption of re-routing the network south of the Cape of Good Hope.
Logistics & Services demonstrated resilience in 2024 with momentum building steadily each quarter culminating in volume growth, higher revenue and improved EBIT margin compared to 2023. Revenue grew 7% supported by solid growth in Warehousing, Air and First Mile product categories while profitability benefitted from progress in most products.
Terminals delivered its best ever financial results in 2024 with EBITDA and EBIT reaching record highs. This was driven by significant top line growth due to strong volumes along with inflation-offsetting tariffs increases, a better customer and product mix, and higher storage revenue.
Within Ocean revenue increased, directly impacted by the higher freight rates of 17%, coupled by a volume increase of 3.6%. Unit cost at fixed bunker increased by 1.7%, due to the higher costs associated with the Red Sea situation partly offset by higher volume delivery. Utilisation was 96% and improved by 4.1 percentage points compared to 2023 (92%), following the structural capacity efforts. Schedule reliability was lower as it was heavily impacted by the Red Sea situation; however, it improved since the beginning of 2024, highlighting the targeted customer outcome efforts throughout the year, the company said.
As to the 2025 financial outlook, Maersk said its guidance is based on the expectation that global container volume growth in 2025 will be around 4% and that Maersk will grow in line with the market.
“It is further expected that 2025 is likely to show greater supply-demand imbalance with continued new deliveries in the container shipping industry and a potential re-opening of the Red Sea. Nevertheless, this imbalance may be largely offset by supply-side drivers and strong market demand. For the purposes of the financial guidance, Maersk assumes that the Red Sea re-opens mid-year for the low end of the guidance and re-opens at year-end for the high-end.
“Maersk’s outlook for 2025 is subject to considerable macroeconomic uncertainties impacting container volume growth and freight rates.”
