On 8 February, A.P. Muller Maersk (Maersk) released its full-year 2023 financial results.
- 2023 financial guidance achieved with underlying EBITDA of USD 9.8bn
- Given significant oversupply challenges and increased uncertainty, Maersk expects for the full-year of 2024 underlying EBITDA between USD 1.0bn and 6.0bn
- Prudent capital allocation and continued focus on integrator strategy with 2023 dividend proposed at DKK515/share, suspension of share buy-back programme and initiation of demerger of towage business Svitzer.
A.P. Moller – Maersk (Maersk) delivered solid financial results for 2023 in line with our financial guidance for the year. While volumes were up across most products and strong cost control helped improve results, rates continued to erode, particularly in Ocean. Revenue for 2023 was USD 51.1bn with an EBIT margin of 7.7% impacted by declining freight rates.
Financial guidance for 2024
Guidance is based on the expectation that global container volume growth in 2024 will be in the range of 2.5% to 4.5% and that Maersk will grow in line with the market. It is further expected that the significant oversupply challenges in the Ocean industry will materialise fully over the course of 2024. High uncertainty remains around the duration and degree of the Red Sea disruption with the duration from one quarter to full year reflected in the guidance range. Front-loading is expected towards the start of 2024.
Svitzer demerger
The Board of Directors of Maersk has decided to initiate a demerger of Maersk’s towage business which will be tax exempt for Danish tax purposes. The activities in Svitzer A/S (Svitzer) and its subsidiaries will be contributed to a new company with the legal name Svitzer Group A/S (Svitzer Group) which shares will be distributed pro-rata to Maersk shareholders and are expected to be admitted for trading and official listing on Nasdaq Copenhagen A/S (Nasdaq Copenhagen).
Having evaluated the different options for Svitzer, Maersk has concluded that Svitzer as a stand-alone listed entity is the best option for the company and for long-term value creation for Maersk shareholders, offering them the possibility to participate in the future growth of a global leader within towage with attractive development prospects. Subject to approval by the Maersk shareholders at an EGM in late April, the anticipated first day of trading and official listing for the shares of Svitzer Group on Nasdaq Copenhagen is 30 April 2024.
Cash distribution to shareholders
A total distribution of cash to shareholders of USD 771m from share buy-backs took place during Q4 2023. For the full year the cash distribution was USD 3.1bn.
Given the heightened uncertainty, the Board of Directors has decided to immediately suspend the share buy-back programme, with a re-initiation to be reviewed once market conditions in Ocean have settled.
The Board of Directors proposes a dividend to the shareholders for 2023 of DKK 515 per share of DKK 1,000, corresponding to 30% of underlying net results as per the company’s dividend policy.
Highlights Q4
Highlights for the year
Sensitivity guidance
Financial performance for A.P. Moller – Maersk for 2024 depends on several factors subject to uncertainties related to the given uncertain macroeconomic conditions, bunker fuel prices and freight rates. All else being equal, the sensitivities for 2024 for four key assumptions are listed below:
