Maersk has posted growth across the ocean, logistics, and terminal businesses. Credit: A.P. Moller – Maersk.
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A.P. Moller – Maersk has recorded growth in first quarter performance, driven by its ocean, logistics, and terminal businesses, although its earnings before interest and tax (EBIT) was lowered by $718m due to the Russia-Ukraine conflict.
The rise in earnings in the first three months of 2022 was attributed to rising freight rates amid supply-chain disruptions.
Of the $718m hit from the impact of the Russian invasion, $627m were impairment losses while $91m was rise in operating costs.
Maersk previously said that it would halt all of its operations in Russia and Belarus in the wake of Russia’s military offensive against Ukraine.
Currently, the company paused all vessel operations in Russia as well as service with Belarus.
The company plans to shut down its offices in Far East Russia, Novorossiysk, and Kaliningrad this summer.
Maersk will operate its offices in Saint Petersburg and Moscow until the end of this year, while its Belarus office will close during summer this year.
The Danish shipping company’s revenue surged 55% to $19.3bn in Q1 2022 from $12.44bn in the same quarter a year ago.
This included a 64% jump in revenue in the ocean segment to $15.6bn, 41% rise in the logistics segment to $2.9bn, and a growth in revenue in the terminals segment to $1.1bn.
The firm’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) soared to $9.1bn from $4.04bn. Free cash flow soared 153.5% year-on-year to $6.01bn.
Maersk CEO Søren Skou said: “In Q1 we delivered the best earnings quarter ever in A.P. Moller – Maersk with growth across Ocean, Logistics and Terminals.
“The increased earnings are driven by freight rates and by contracts being signed at higher levels.”
