Q3 2024 AP Moeller - Maersk A/S Earnings Call Transcript
Key Points
- A P Moller Maersk AS (AMKBF) reported a significant uptick in profitability with an EBITDA of $4.8 billion and an EBIT of $3.3 billion for the third quarter of 2024.
- The logistics and services segment showed recovery with an EBIT margin increase to 5.1%, driven by productivity and cost management.
- The terminal business demonstrated resilience with an EBIT of $338 million, supported by good volumes and top-line growth.
- The company upgraded its full-year guidance, expecting an EBIT between $5.2 billion and $5.7 billion, and a minimum free cash flow of $3 billion.
- Strong market demand and successful customer wins contributed to an 11% organic growth in logistics and services, surpassing market growth.
- The situation in the Red Sea remains a concern with high threat levels, impacting operations.
- Higher network costs were incurred due to longer sailing routes around the Cape of Good Hope, leading to increased bunker consumption and charter costs.
- The logistics and services segment, while improving, still faces challenges in achieving the target EBIT margin of above 6%.
- The transition to the new Gemini network poses potential risks of disruption during the initial phase.
- The company suspended its share buyback program due to uncertainties in the ocean market, indicating cautious capital allocation.
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Welcome, everyone, and thank you for joining us for this earnings call today as we present our third-quarter results for 2024. My name is Vincent Clerc. I'm the CEO of A.P. Moller - Maersk. And with me today in the room is our CFO, Patrick Jany.
As usual, we start with the highlights from the quarter just passed. The third quarter marked another uptick in performance on the previous two quarters of 2024. We saw strong business performance with good progress, both financially and operationally across all three main business segments.
Overall, we closed our books this quarter with an EBITDA and EBIT of $4.8 billion and $3.3 billion, respectively. On a year-to-date basis, this puts us more or less on the same level as last year with a year-to-date EBIT of $4.4 billion compared to $4.5 billion in 2023. Compared to last year, however, we, of course, find ourselves in very different circumstances and look into a very different final quarter for the year.
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