• 2021 May 6 13:19

    Continued growth, high profit and additional share buy backs from A.P. Moller - Maersk in Q1 2021

    A.P. Moller - Maersk had an exceptionally strong start to the year, with strong earnings and growth momentum across all our businesses in ocean, port services and logistics. The company benefitted from strong demand in a market still influenced by the pandemic and significant disruptions in global supply chains.

    Strong demand coupled with significant operational challenges such as bottlenecks, lack of capacity and equipment shortage in global supply chains drove freight rates up significantly. At the same time, customers’ demand for truly integrated supply chains and simple, self-service solutions has never been more evident and this provides momentum, especially for logistics and digital solutions.

    “A.P. Moller - Maersk delivered an exceptionally strong performance in Q1 2021 with record profit for the quarter. The high growth and profitability were driven by solid demand across Ocean, Logistics and Terminals. Strong demand led to bottlenecks and a lack of capacity and equipment, which drove up freight rates to record-high levels,” says Søren Skou, CEO of A.P. Moller - Maersk, before adding:

    “We remain focused on the long-term transformation of A.P. Moller - Maersk, prioritising customers’ demand for integrated logistics. Our integrator strategy was validated by strong customer support during Q1. As we change the conversations with customers from being short-term transactional to becoming long-term value-based, we lay the foundation for further, stable growth.”

    Søren Skou
    CEO, A.P. Moller - Maersk
    Overall in Q1, EBITDA increased to USD 4bn from USD 1.5bn year on year and EBIT to USD 3.1bn from USD 552m compared to same quarter last year, while revenue improved by 30 pct. to USD 12.4bn. The results reflect the high volumes, which are up 5.7 pct., significant increases in freight rates of 35 pct. and lower bunker fuel prices, leading to an EBITDA in Ocean of USD 3.4bn compared to USD 1.2bn in Q1 2020, and an increase in revenue to USD 9.5bn from USD 7.2bn.

    Logistics & Services continued with strong growth momentum and revenue increase of 42 pct. in Q1 to USD 2bn, mainly driven by organic growth, but also with growth from the acquisitions of Performance Team and KGH Customs Services. EBITDA increased by 201 pct. to USD 205m compared to USD 68m, and EBIT increased to USD 139m compared to USD 29m same quarter last year, partly driven by margin expansion.

    Also, Gateway Terminals had a strong Q1 performance, with revenue increasing by 24 pct. to USD 915m from USD 740m led by higher volumes and storage income, while EBITDA increased by 52 pct. to USD 323m from USD 213m.

    The results came in a persistently difficult environment where countries are still contending with the effects of the pandemic.

    “We have continued to dedicate significant efforts to the safety of our employees and contribute to the societies we operate in, this quarter with a particular emphasis on India,” says Søren Skou and continues:

    “Overall, we can be very satisfied with how the business performed this quarter. High profitability led to a ROIC of 15.7 pct., and our strong free cash flow gives us the opportunity to invest further in the transformation of the business, while accelerating the remaining part of the ongoing share buy-back programme and subsequently launch a new, additional share buy-back programme of approx. USD 5bn over the coming two years.

    "We have continued to dedicate significant efforts to the safety of our employees and contribute to the societies we operate in, this quarter with a particular emphasis on India."

    Søren Skou
    CEO, A.P. Moller - Maersk
    Guidance for 2021
    Given the result in Q1 2021 and our expectation that the exceptional market situation will continue well into the fourth quarter of 2021, the full-year guidance has been revised upwards on 26 April 2021 to:

    Underlying EBITDA in the range of USD 13.0-15.0bn (previously USD 8.5-10.5bn) compared to USD 8.3bn in 2020
    Underlying EBIT in the range of USD 9.0-11.0bn (previously USD 4.3-6.3bn) compared to USD 4.2bn in 2020
    Free cash flow of minimum USD 7.0bn (previously above USD 3.5bn) compared to USD 4.6bn in 2020
    As part of the full-year guidance for 2021, A.P. Moller - Maersk now expects the current exceptional situation, with the demand surge leading to bottlenecks in the supply chain and equipment shortage, to continue well into the fourth quarter of 2021 versus previously expected to continue in Q1 and normalise thereafter. As expected, profitability in Q1 2021 was above Q4 2020.

    Ocean is still expected to grow in line with global container demand, which is now expected to grow by 5-7 pct. in 2021 (previously 3-5 pct. in 2021), primarily driven by the export volumes out of China to the USA, with the highest growth seen in the first half-year.

    For the years 2021-2022, the accumulated CAPEX is now expected to be around USD 7bn (previously USD 4.5-5.5bn).

    Sensitivity guidelines
    Financial performance for A.P. Moller - Maersk depends on several factors and is subject to uncertainties related to COVID-19, bunker fuel prices and freight rates, given the uncertain macroeconomic conditions.

    About A.P. Moller - Maersk
    A.P. Moller - Maersk is an integrated container logistics company working to connect and simplify its customers’ supply chains. As the global leader in shipping services, the company operates in 130 countries and employs roughly 80,000 people.




2021 June 14

17:46 Fincantieri and MSC celebrate the start of construction of “Explora I”,
15:52 ABS and 22 industry players to study ammonia as an alternative marine fuel
15:18 ICS Guidance for Ship Operators and Roadmap for vaccination of seafarers
14:09 Bollinger submits proposal for U.S. Coast Guard Heritage-class offshore patrol cutter
13:19 Genco to jointly study ammonia as an alternative marine fuel
12:31 Wärtsilä brings Power-to-X technology to World Expo
11:57 Trafigura joins cross industry study into the adoption of green ammonia as an alternative marine fuel
11:24 DFDS: Freight up 31% following lockdowns in 2020
10:32 SEACOR Marine announces debt payoff agreement
09:47 Kick off “Joint Study” framework for studying ammonia as an alternative marine fuel
09:13 MABUX: bunker indexes may change irregularly on June 14

2021 June 13

15:31 Petrobras signs contract for the supply of eighth Búzios unit
14:18 Lyon Shipyard to invest $24.4 million to expand its operation in the City of Norfolk
13:29 Shearwater GeoServices recycles Western Trident as part of its fleet renewal strategy
12:41 MCA to carry out unannounced inspections of fishing vessels
11:42 The 126-passenger expedition cruise vessel National Geographic Resolution hits the water
10:56 Saipem: Inauguration of Saipem Guyana offshore construction facility in Georgetown

2021 June 12

16:09 Fred. Olsen Cruise Lines unveils brand new sailings aboard new ships Bolette and Borealis in 2022
14:21 "Blowdown" to reduce risk and raise decommissioning progress
13:42 Roambee announces a strategic investment from and partnership with PSA unboXed
13:19 Belfast Harbour awards £25,000 to community projects
12:41 Maurice GEORGES named as new Chair of the Executive Board of Dunkerque-Port
11:38 AIDA Cruises resumes holiday voyages from July 29, 2021
10:52 OptiLink: A digital revolution in ballast water management

2021 June 11

18:07 LNG consumption as a marine fuel has almost doubled in 2020
17:31 Hapag-Lloyd to provide full transparency on vessel arrivals
17:09 MOL joins international think tank and accelerate development for carbon capture, utilization and storage
16:58 GTT obtains tank design order for two new LNG carriers from Samsung Heavy Industries
16:52 Shipping industry welcomes Nigeria’s creation of ‘Deep Blue’ to stamp out piracy in the Gulf of Guinea
16:24 Stena Line will move its Europoort-Killingholme service to Immingham
16:00 Yantar shipyard to build rescue ship of Project MPSV06M for Marine Recue Service
15:36 Sea Port of Saint-Petersburg hosts introductory practical training for students
15:13 The Port of Rotterdam Authority, Customs, Fresh Produce Centre and Portbase join forces to facilitate the growth market of refrigerated products
14:25 Seanergy takes delivery of two Capesize vessels with prompt commencement of period charters
13:51 Total throughput at the ports of Bremen increases once again during Q1 4 June 2021
13:32 Roman Gorgutsa appointed as General Director of Morstroytechnology
13:28 Mitsui E&S Machinery and 22 industry players kick off studying ammonia as an alternative marine fuel
13:04 MOL and ACSL use flying drone to conduct autonomous inspection of vessel holds under non GNSS and dark environment
12:49 Port of Los Angeles becames the first port in the Western Hemisphere to process 10 million container units in a 12‑month period
12:38 Oboronlogistics receives RS certificate on safety management of cargo ship Sparta
12:14 CNES and CMA CGM sign unique partnership agreement to spawn innovative solutions for shipping, logistics and the space industry
12:01 APM Terminals continues roll-out of digital export processing at Russian terminals
11:57 Russian Railways: Loading of export cargo bound for domestic ports grew by 8% in 5M’21
11:34 RS and GTT sign new cooperation agreement
11:33 Xeneta selects CLIVE Data Services’ ‘dynamic loadfactor’ data and analyses to deliver complete air cargo market intelligence
11:11 Stagnation in R&D investment creating unacceptable risk for industry zero emissions future - ICS
10:50 Throughput of port Riga (Latvia) in 5M’2021 dropped by 15.1%
10:29 Rosneft agrees heads of terms to sell a stake in the Vostok Oil Project to a consortium of Vitol and Mercantile & Maritime
10:08 DRAX and Mitsubishi Heavy Industries sign pioneering deal towards delivery of the world’s largest negative emissions project
09:52 Throughput of Russian seaports in 5M’2021 fell by 2.7% Y-o-Y
09:40 Oil prices continue decreasing
09:23 Baltic Dry Index as of June 10
09:16 MABUX: Global bunker prices may rise slightly on June 11.
09:04 The port of Rotterdam Authority intends to build brand new port information centre
08:02 Rolls-Royce to showcase future South Korean naval power and propulsion

2021 June 10

18:45 Equinor sells its refining business in Denmark to Klesch
18:25 Rolls-Royce builds new fuel cell demonstrator to ensure electricity supplies
18:05 DNV predicts that marine finfish production in deeper waters offshore will take a 13% market share in 2050
18:00 Comprehensive programme on development of Yamal resource potential to be developed by October 2021
17:51 Contract awards for PSVs in UK