Subscribe Login
DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
Supply Chain

Maersk Beats Q2 Revenue Expectations, Lifts 2022 Guidance

Shipping group Maersk has raised its 2022 profit guidance after beating second-quarter revenue expectations as congested global supply chains boosted freight rates.

The shipping industry has seen record profits in recent quarters on a surge in consumer demand and pandemic-related bottlenecks in US and Chinese ports which have prompted a spike in freight rates.

'Congestion in global supply chains leading to higher freight rates has continued longer than initially anticipated,' the Copenhagen-based company said in a statement.

Outlook

Maersk now expects underlying earnings before interest, taxation, depreciation and amortisation (EBITDA) of around $37 billion (€36.2 billion) versus the $30 billion (€29.3 billion) it forecast earlier. Maersk had initially expected full-year EBITDA at $24 billion (€23.5 billion).

The new guidance is based on a gradual normalisation in ocean container shipping in the fourth quarter of this year. Its previous guidance was based on that happening early in the second half of the year.

The Copenhagen-based company is often seen as a barometer for global trade as it transports goods for retailers and consumer companies such as Walmart, Nike and Unilever.

Maersk, one of the world's biggest container shippers with a market share of around 17%, said in June that the cost of shipping goods was unlikely to abate anytime soon due to array of inflationary pressures.

Shares in Maersk were trading up 1.1% at 08:25 GMT after touching their highest levels since early June.

Second-Quarter Performance

Revenue in the second quarter stood at $21.7 billion (€21.2 billion), it said, above the $19.7 billion (€19.3 billion) forecast by analysts in a poll gathered by the company.

Underlying EBITDA was $10.3 billion (€170 million), compared to the $8.2 billion (€8 billion) forecast by analysts.

"The strong result is driven by the continuation of the exceptional market situation within ocean (container shipping)," the company said.

Maersk is due to publish a full set of results for the second quarter on 3 August.

News by Reuters, edited by ESM – your source for the latest supply chain news. Click subscribe to sign up to ESM: European Supermarket Magazine.

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days