Shipping industry network August 3 news, Maersk announced the 2022 second quarter and the first half of the unaudited financial results.
In the second quarter of this year, Maersk achieved record results, achieving operating income of US $21.65 billion, a year-on-year increase of 52.1; earnings before interest, tax, depreciation and amortization (EBITDA) of US $10.33 billion, a year-on-year increase of 103.9; earnings before interest and tax (EBIT) 8.99 billion US dollars, a year-on-year increase of 120.1, net profit of US $8.62 billion, a year-on-year increase of 130.1.
In the first half of this year, Maersk achieved operating income of US $40.94 billion, a year-on-year increase of 53.5 per cent; EBITDA of US $19.41 billion, a year-on-year increase of 113.2 per cent; EBIT of US $16.26 billion, a year-on-year increase of 126.4 per cent, and net profit of US $15.43 billion, a year-on-year increase of 138.7 per cent.
In terms of sub-sectors, in terms of shipping, operating income increased to $17.4 billion and earnings before interest and tax increased to $8.5 billion. Although spot freight rates have fallen from their peak earlier this year, given strong demand and continued congestion in the global supply chain, Maersk continues to sign long-term contracts at prices above last year's level, with average freight rates per case up 64% year-on-year. In the second quarter, the volume of containers fell 7.4 percent year-on-year.
In the second quarter, Maersk maintained a strong momentum in providing customers with integrated logistics solutions. Thanks to the increase in new customer transactions and the increase in existing customer expenditures, Maersk Logistics's operating income increased to US $3.5 billion in the second quarter, An increase of 61%; earnings before interest and tax increased to US $0.234 billion. Maersk continued to increase its investment in the logistics sector. In the second quarter, Maersk completed the acquisition of Wingyuan International (Senator International), a well-known global freight forwarding company, and further strengthened its air freight business with the launch of Maersk Air Cargo.
In terminals, mainly driven by strong import demand in the United States, above-market growth in Asia and higher storage revenue, operating income increased to 1.1 billion US dollars and EBIT increased to 0.316 billion US dollars.
Søren Skou, CEO of A.P. Moller-Maersk, said: "The record results achieved in the second quarter of 2022 and the 15 consecutive quarters of year-on-year earnings growth clearly validate the correctness of the company's strategy to transform the company into a global integrated logistics company. The record growth and profitability was driven by strong contract freight rates in ocean transportation, rapid earnings growth in the logistics sector and continued steady improvements in terminal efficiency. As global supply chain congestion continues and the conflict between Russia and Ukraine has weighed on consumer confidence, especially in Europe, the volume of maritime transport has declined. However, in terms of logistics, the demand for the company's high-value services from maritime customers is still high. The company's freight volume growth exceeded the market, achieving more than 30% organic growth for the sixth consecutive quarter.
Market Prospects
the second quarter of 2022, global supply chain demand for logistics services continues to slow. Freight rates declined slightly in the quarter, but remained at historically high levels due to increased congestion in the global supply chain. Compared with the same period last year, global container traffic fell by 2.3, while global air cargo (CTK) fell by 9.4 in April and May this year. Geopolitical uncertainty and rising inflation due to higher energy prices continue to weigh on consumer confidence and growth expectations. Against this backdrop, global container demand in 2022 is expected to be at the low end of the-1% to + 1% forecast range. "
2022 Performance Expectations
global supply chain congestion has led to higher freight rates lasting longer than initially thought. Maersk expects full-year 2022 earnings before interest, tax, depreciation and amortisation to rise to about $37 billion from $30 billion previously expected, and real earnings before interest and tax to $31 billion from $24 billion previously expected. Free cash flow for the full year 2022 is expected to exceed $24 billion, compared to the previous forecast of over $19 billion, while cumulative capital expenditure in 2022-2023 will remain in the $9 billion-$10 billion range.
Maersk said that the current forecast for 2022 full-year results is that the situation of the maritime business will gradually normalize in the fourth quarter of 2022.
Based on the revised full-year performance forecast, the Board decided to increase the current share repurchase program by $0.5 billion per year from $2.5 billion to $3 billion in 2022-2025.
Source: Shipping