Maersk reported a two-fold drop in revenue – Kommersant
[ad_1]
The revenue of one of the largest maritime cargo operators, the Danish company AP Moller-Maersk, decreased in the third quarter almost doubled (by 95%), amounting to $12.1 billion. Earnings before interest, taxes, depreciation and amortization (EBITDA) fell almost six times, amounting to $1.9 billion. In the face of a decline in all indicators, Maersk announced reduction of 9% of employees – 10 thousand people.
The company’s quarterly results were worse than analysts’ expectations. In addition, Maersk said it was going to reconsider continuing its share repurchase program next year, and possibly discontinue it. “The only way we can understand this is that in 2024 we are in for something very bad and probably worse than we expected,” commented Jyske Bank analyst Morten Holm Engard. Maersk shares fell today, November 3, by more than 12%.
Maersk revenue and profit is declining already several blocks away. This is due to a drop in demand for sea freight amid macroeconomic instability, as well as excess capacity left after surges in demand during the pandemic. In such conditions, the company’s costs increase while prices for its services decrease. “Our industry is facing a new normal of subdued demand, prices returning to earlier levels and inflationary pressure on our costs,” Maersk CEO Vincent Clerc said in a statement.
[ad_2]
Source link
