Maersk released its financial report for the third quarter of 2021, and its revenue increased by 68% to US $16.6 billion

On November 2, Maersk released the third quarter financial report of 2021. In the third quarter, the company achieved record revenue, revenue increased by 68% to $16.6 billion, profit before interest and tax (EBIT) increased nearly fivefold to $5.9 billion, and profit before interest, tax, depreciation and amortization (EBITDA) tripled to $6.9 billion. The return on investment capital (ROIC) has increased to 34.5% in the past 12 months.

 

Mr. Shi Soren, CEO of Maersk, said (s ø Ren Skou): "Under the continuous and extraordinary market impact, as well as the strong demand in the United States and the obstruction of the global supply chain, we continue to increase the transportation capacity and expand the scope of services to ensure the smooth delivery of customers' goods. We promote the strategy of providing comprehensive logistics services through more stable shipping business, vigorously developing logistics products and services, and selecting automated and efficient terminals Is the key to supporting client-to-end logistics needs. "

 

In terms of shipping business, affected by extraordinary market conditions, freight rates continued to be high. In the third quarter, revenue nearly doubled from US $7.1 billion in the same period last year to US $13.1 billion, EBITDA increased by US $4.4 billion to US $6.3 billion, and EBIT increased by US $4.4 billion to US $5.3 billion. In order to ensure more reliable transportation, long-term contracts accounted for 20% of ocean cargo volume The proportion further increased to 64% (50% last year).

 

The logistics and service business continued to maintain its growth momentum, with revenue increasing by 38% to US $2.6 billion, of which 33% came from internal organic growth. The growth was driven by the strong business growth of all products and the strong business synergy benefits brought by the top 200 customers of the maritime business. The EBIT increased to US $194 million from US $100 million in the same period last year, with a profit margin of 7.5%, exceeding 6% Medium term objectives.

 

The revenue of portal terminal in the third quarter increased to US $1 billion from US $816 million last year, with cargo volume increasing by 9.6%. This is mainly due to the prolonged opening hours and improved utilization of terminals in North America, Latin America and Asia. Coupled with the improvement of actual efficiency, the terminal business achieved a 10% return on investment capital.

 

Mr. Shi suoren added: "In order to further expand diversified logistics services, we announced today the acquisition of Yiyuan international and increase aircraft orders to provide more flexibility to our customers' supply chain based on our existing air transportation capacity. In view of the significant progress we have made in the transformation to providing comprehensive logistics services and our commitment to shareholder returns, the board of directors decided to increase by $5 billion in 2024 and 2025 The current stock repurchase plan. "

 

Maersk maintains the annual performance expectation announced on September 16, 2021, that is, the actual EBITDA is US $22-23 billion, the actual EBIT is US $18-19 billion, and the annual free cash flow is expected to be at least US $14.5 billion.

 

Due to the high degree of uncertainty related to current congestion and supply chain disruption, it is currently expected that the growth of shipping business in 2021 will be lower than that of global container demand, with an expected growth of 7-9% in 2021 (previously expected to be 6-8% in 2021).

 

The cumulative capital expenditure from 2021 to 2022 is still expected to be about US $7 billion. Due to potential changes in the current demand model, the obstruction of the supply chain will still have an impact on the market trend, and the performance expectation may still fluctuate higher than the normal level. However, it is expected that the current situation will continue until at least the first quarter of 2022, thus affecting the interest and tax discount in the fourth quarter of 2021 and the first quarter of 2022 Profit before amortization of old assets.