Maersk Navigates Challenges: Red Sea as a Profit Catalyst for 2025
Calling 2024 its third-best financial year, Maersk reported across-the-board gains in revenue and earnings on buoyant freight rates and sustained demand.
The world’s second-largest ocean container line reported full-year 2024 revenue of $55.4 billion, up from $51 billion in 2023; a pretax profit of $12.1 billion, up from $9.6 billion; and operating profit of $6.5 billion, increased from $3.9 billion.
"Our ability to navigate shifting circumstances and ensure steady supply chains for our customers was put to the test throughout 2024," stated Vincent Clerc, CEO of Maersk parent A.P. Moller-Maersk. "We successfully capitalized on increased demand while enhancing productivity and rigorously managing costs. 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."
Revenue from the ocean division surged to $37.4 billion, logistics sales reached $14.9 billion, and terminals revenue increased to $4.5 billion. Despite facing global shipping challenges, container volume grew by 0.8% compared to industry-wide gains of 5.3%.
Maersk reported a remarkable climb in container rates by 38.1% in 2024, nearly matching global improvements. Its ocean pretax profit soared to $9.2 billion, with an operating profit rising to $4.7 billion. The ocean EBITDA margin stood at 24.6%, with a notable EBIT margin of 12.7%.
In response to the Red Sea crisis, Maersk strategically rerouted ships on longer voyages, notably impacting fuel costs slightly, which rose by a modest 1.7%. This strategic maneuvering is key to Maersk's strategy as it looks to secure a profitable 2025, forecasting container volume growth to align with global estimates.
"The year 2025 is poised for a greater supply-demand imbalance with new vessel deliveries expected and the potential re-opening of the Red Sea," Maersk projects. This expectation, combined with business strategies, positions Maersk to capitalize on opportunities in the year ahead.
Maersk aims for an EBITDA forecast ranging from $6 billion to $9 billion and maintains an EBIT forecast around $3 billion. A midyear to late-year reopening of the Red Sea holds significant potential for these projections.
In further commitment to shareholders, the company announced dividends and $2 billion in share buybacks, reinforcing confidence in Maersk’s strategic direction.
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