(Bloomberg) -- A.P. Moller Maersk A/S raised its profit forecast for this second time this year after congestion on trade lanes and in ports boosted global freight rates, creating an “exceptional market” for transport companies.
Underlying earnings before interest and tax will be around $31 billion in 2022, the Copenhagen-based company said on Tuesday. That compares with a previous forecast of around $24 billion and an average estimate of $28.4 billion in a Bloomberg survey of analysts.
Maersk, which controls about one-sixth of the world’s container trade, and its peers have benefited from supply-line disruptions as a shortage of shipping capacity has enabled them to charge higher prices for their services. Hapag-Lloyd AG, the world’s fifth-largest shipping line, on Thursday raised its profit forecast saying average freight rates have been about 80% higher in the first half of 2022.
“Congestion in global supply chains leading to higher freight rates has continued longer than initially anticipated,” Maersk said. “The strong result is driven by the continuation of the exceptional market situation.”
Maersk is due to publish its second-quarter report on Wednesday. These were some of the other highlights in Tuesday’s preliminary statement:
- Underlying earnings before interest, tax, depreciation and amortization will be around $37 billion in 2022, up from around $30 billion seen previously.
- Free cash flow in 2022 will be above $24 billion, up from a previous forecast of above $19 billion.
- Preliminary second-quarter revenue was $21.7 billion.
- Preliminary second-quarter underlying Ebit was $8.9 billion.
- Preliminary second-quarter underlying Ebitda was $10.3 billion.
(Updates with more financial details in final paragraph.)
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
Author: Christian Wienberg