A.P. Moeller-Maersk shares slump on more pessimistic rates, container view
Shipping giant A.P. Moeller-Maersk on Wednesday said it’s clear that freight rates have peaked as it produced another surge in third-quarter profit.
The company MAERSK.B, -5.51% AMKBY, +1.53% said its profit in the third quarter rose to $8.88 billion from $5.44 billion, as revenue climbed to $22.78 billion from $16.61 billion. Its earnings before interest, tax, depreciation and amortization of $10.86 billion came in ahead of consensus estimates of $10.1 billion.
While it confirmed its underlying EBITDA guidance for the year of around $37 billion — which it had hiked twice this year — it lowered its outlook for global container demand, now seeing a decline of between 2% and 4%. It previously had estimated demand would be at the lower end of a range of -1% to +1%.
It said the average contract rate for 2022 is expected to be around $1,700 per forty foot container equivalent unit higher than last year, down from its previous estimate of $1,900 higher.Shares dropped 6% on Wednesday morning and have dropped 35% this year.
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