A.P. Moller-Maersk Updates Forecasts

OSLO/COPENHAGEN (Reuters) – Danish shipping group A.P. Moller-Maersk announced an increase in its full-year forecasts due to strong third-quarter results, robust demand, and ongoing disruption in the Red Sea.

Maersk revised its outlook for global container market volume growth for 2024 to approximately 6%, up from an earlier range of 4% to 6%.

The company reported preliminary underlying earnings before interest, tax, depreciation, and amortization (EBITDA) of $4.8 billion for the third quarter, surpassing analysts' expectations of $3.7 billion.

Revenue reached $15.8 billion, beating the anticipated $14.4 billion.

Disruption to shipping routes in the Red Sea caused by attacks from Iran-aligned Houthi militants has affected vital east-west trade routes, leading to increased freight rates and congestion in Asian and European ports.

Maersk now expects a full-year underlying EBITDA between $11.0 billion and $11.5 billion, an increase from the previous estimate of $9 billion to $11 billion.

Earnings before interest and tax for 2024 are projected to be between $5.2 billion and $5.7 billion, revised up from an earlier range of $3 billion to $5 billion.