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Maersk triples quarterly profit despite lower container volumes -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO: A Maersk Line vessel transports shipping containers through Ismailia’s Suez Canal, Egypt on July 7, 2021. Photograph taken July 7, 2020. REUTERS/Amr Abdallah Dalsh

COPENHAGEN (Reuters) – Shipping group A.P. Moller Maersk, Tuesday’s chief executive officer of A.P. Shipping Group said that record freight rates helped to boost quarter earnings in spite of lower container volumes because of congestion at ports.

Due to the coronavirus pandemic, there has been a shortage in container ships. This has led to logjams at ports and a rise in freight transport costs.

Maersk stated that its Ocean business will grow at a lower rate than the global container demand. This is compared to Maersk’s previous guidance of 6-8%.

The company also announced that it would buy Senator International freight forwarder, which has the largest air freight business, and two Boeing (NYSE 🙂 planes for an estimated enterprise value of $644 million.

After its outstanding performance in the pandemic, Maersk has seen its transformation into an integrated logistics firm.

The company reported that its final third quarter earnings before interest tax, amortization, and depreciation (EBITDA), tripled from a preliminary estimate of $7 billion on September 16, which was based on the release of its 2021 forecasts.

In addition, it stated that its current share buyback programme would be extended by $5B over 2024 and 2025.

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