Strong results are reported by A. P. Moller – Maersk for 2022.

Strong results are reported by A. P. Moller – Maersk for 2022.

Highlights

• In line with full-year projection, A.P. Moller – Maersk (Maersk) produced exceptional financial results in 2022. Revenue climbed by 32% to USD 81.5 billion, while EBIT increased by 57% to USD 30.9 billion.
• Through the acquisition of businesses like Pilot, Senator, and LF Logistics as well as organic growth of more than 20% in Logistics, Maersk has accelerated its business transformation.
  In order to fulfill its promise to decarbonize logistics for all means of transportation, Maersk has laid forth certain timetables. Seventy percent of the top 200 clients have established carbon objectives, and a key component of Maersk’s ESG approach is assisting them in doing so.
• Maersk will continue to pursue the growth prospects within the Logistics and Terminals businesses despite the fact that the global economy’s slowdown will result in a softer market, particularly in Ocean.
• Maersk provides 2023 full year EBIT guidance of USD 2–5 billion in this context.

Copenhagen – 2022 proved to be a particularly successful year for Maersk. The strong performance across all businesses under the unusual market conditions in the first half of the year was what drove the record financial results. In all segments, there was a major de-stocking as congestions subsided and consumer demand fell, signaling the beginning of the anticipated normalization of the ocean market in the final quarter of the year.

2022 was remarkable in more than one way. While we report the best financial result in the history of the company, we have also taken the partnerships with our customers to a new level by supporting their supply chains end to end during highly disruptive times. Our commitment to provide visibility and truly integrated logistics solutions continue to resonate strongly with our customers for whom it is a strategic imperative to make their supply chains more resilient and sustainable. As we enter a year with challenging macro-outlook and new types of uncertainties for our customers, we are determined to speed up our business transformation and increase our operational excellence to seize the unique opportunities in front of us.

Due to the high freight rates and robust demand, especially in the first half of the year, Ocean produced the strongest result in 2022 that has ever been recorded. Ocean revenue increased 33%. With a steady flow of long-term contracts throughout the year, Ocean continues to execute on the strategic transformation. Due to the contractual basis of its client relationship, Ocean was able to maintain good profitability while improving delivery performance over the course of the year as congestion decreased.

Revenue rose 47% in Logistics & Services, with 21% of that growth coming from organic sources. As the company continues to develop integrated solutions to fulfill end-to-end supply chain requirements, the top 200 clients accounted for the majority of the organic revenue growth. With the acquisition of LF Logistics alone adding 198 warehouses or 3.1 million square feet, growth in warehousing was particularly impressive, with the footprint more than doubling to 7.1 million square feet.

In Terminals, EBIT adjusted for the exit from Russia hit a record high of USD 1.2 billion, helped by strong volume growth and high storage income from congested areas. The effects of a high rate of global inflation have been reduced as a result of a combination of tariff hikes and efficiencies.

Dividends

The Board of Directors suggests paying shareholders an ordinary dividend of DKK 4,300 per DKK 1,000 worth of shares (DKK 2,500 per share of DKK 1,000 previous year). Based on the Maersk B share’s closing price of DKK 15,620 as of December 30, 2022, and a dividend yield of 27.5% (10.7% the previous year), the projected dividend payout represents 37.5% of net underlying profit. After the annual general meeting on March 31, 2023, payment is anticipated.

hints for 2023

The forecast for 2023 assumes that inventory adjustments will be finished by the end of the first half, creating a more balanced demand environment. The global ocean container market is predicted to increase between -2.5% and +0.5% in 2023, although global GDP growth would be modest. A.P. Moller-Maersk anticipates expanding in step with the industry.

According to these hypotheses, A.P. Moller-Maersk anticipates underlying EBITDA of USD 8.0-11.0bn, underlying EBIT of USD 2.0-5.0bn, and free cash flow (FCF) of at least USD 2.0bn for the entire year 2023. The 9.0–10.0 billion USD CAPEX projection for 2022–2023 is unchanged. Expected CAPEX for 2023–2024 is $10.0–11.0 billion, with investments in our integrator strategy, technology, and decarbonization taking the lead. An impairment and restructuring charge of USD 450 million is anticipated in Q1 in conjunction with the restructuring of our brands, without changing the financial outlook.