A.P. Mueller – Maersk released its second quarter financial report today. Data shows that the company's business achieved a record performance, with revenue growth of 52%, and profit growth compared to the same period last year. Due to the continued impact of special market conditions and the company's continuous promotion of its strategic transformation in comprehensive logistics, its performance has improved. Based on strong results in the first half of 2022, Maersk raised its full-year 2022 performance forecast and added a stock buyback program. "In the second quarter, we achieved exceptionally strong performance and achieved year-on-year profit growth for 15 consecutive quarters. We are satisfied with all the business developments in the first half of 2022, which clearly demonstrates the progress and outstanding performance of the entire team in the process of Maersk's transformation into a global integrated logistics company."
In the second quarter, revenue grew to $21.7 billion, EBITDA and EBIT (EBIT) were $10.3 billion and EBIT (EBIT) respectively, with free cash flow increasing to $10.3 billion and EBIT (EBIT) respectively, with free cash flow increasing to $10.3 billion and EBIT (EBIT) respectively. $6.8 billion. Net profit in the second quarter was US$8.6 billion, and net profit in the first half of the year was US$15.4 billion. The return on investment capital (ROIC) of the past twelve months is 62.5%.
Shi Suoren said: "Based on the strong long-term contract freight rates of sea freight contracts, rapid growth in logistics business profits and stable performance of terminal business, the quarter achieved good results. With the continued congestion of some ports and the impact of the situation in Russia and Ukraine, especially in Europe, it suppressed consumer confidence and sea freight volume declined. In terms of logistics business, sea freight customers recognized Maersk's value proposition, logistics product cargo volume growth was higher than the market level, revenue in the second quarter increased by 36%, and achieved organic growth of more than 30% for six consecutive quarters."
revenue reached For $17.4 billion, profit before interest and tax increased to $8.5 billion, but fuel costs, route networks and container loading and unloading costs continued to increase this quarter, and cargo volume decreased by 7.4%, partially offsetting revenue from higher freight rates. Spot freight rates have fallen from peaks, but given strong market demand and continued global supply chain congestion, the company's contract freight rates are higher than the same period in previous years.
In the second quarter, Maersk maintained a good momentum in providing customers with integrated logistics solutions. Logistics business revenue grew 61% to $3.5 billion in the quarter, and earnings before interest and tax increased to $234 million due to continuous gains of new and existing customers to further purchase logistics products. Maersk continues to invest to enhance its logistics product portfolio and capabilities, completing the acquisition of Pilot Freight Services, a US-based full-process and cross-border logistics solution provider, and Senator International, a global air transport expert, in the second quarter. In addition, Maersk Air Cargo was established to further strengthen air transport services. In terms of the terminal business, revenue increased to US$1.1 billion in the second quarter, and profit before interest and tax was US$316 million. Terminal performance was driven mainly by strong U.S. import demand, high growth in Asian markets, and higher storage revenue, but higher costs offset some of the performance growth.
Market situation
2022 In the second quarter of 2022, the demand for logistics services in the global supply chain slowed down. Freight rates fell slightly in the quarter, but freight rates remain at historical highs due to intensified global supply chain congestion. Global container cargo volume fell 2.3% compared to Q2 2021, while global air freight (CTK) fell 9.4% in April/May. Geopolitical uncertainty and rising energy prices have intensified inflation continue to put pressure on consumer confidence and growth expectations. Therefore, global container demand is currently expected to be at the lower limit of the -1% to +1% range in 2022.
2022 full-year expectation
As shown by yesterday (August 2) Maersk raised its full-year performance forecast for 2022, Maersk expects its actual profit before interest, tax, depreciation and amortization in 2022 to be US$37 billion, actual profit before interest, tax, tax, and free cash flow will exceed US$24 billion. Based on the performance in the first half of 2022, the shipping market is expected to gradually return to normal in the fourth quarter.
Based on adjusted performance expectations, the company's board of directors decided to increase the stock repurchase plan by US$500 million per year from US$2.5 billion to US$3 billion between 2022-2025.
Performance highlights
2022 performance influencing factors:
Due to factors such as the situation in Russia and Ukraine, the new crown epidemic, fuel prices, freight rates and macroeconomics, A.P. Mueller-Maersk's annual performance in 2022 is full of uncertainty. Based on the expected income level and other same conditions, the following key factors will have an impact on the company's annual performance:
