Maersk has announced record Q1 financial results across its Ocean, Logistics and Terminals businesses.
The Danish logistics giant previously reported total revenues of $19.3 billion for Q1 2022 for the period ending 31 March. This is a 55% year-on-year increase.
Earnings before interest, taxes, depreciation, and amortization more than doubled, to US$9.1bn. The astonishing figures are driven primarily by higher freight rates and strong long-term partnerships with customers seeking end-to-end supply chain support.
“In Q1 we delivered the best earnings quarter ever in Maersk with growth across Ocean, Logistics and Terminals,” said Søren Skou, CEO of Maersk.
“The increased earnings are driven by freight rates and by contracts being signed at higher levels. While global supply chains remain under significant pressure, we continue to demonstrate superior ability to help customers overcome logistic challenges.
Demand for logistics products and solutions drives growth
“In Logistics, we enjoyed strong demand for products and solutions across our portfolio leading to the fifth quarter in a row with organic growth of more than 30% while Terminals presented its best quarter ever.”
Maersk’s Ocean revenue for the period rose 64% to $15.6bn. As a result of retail slack season, global demand has fallen 1.2%. Due to this, volumes declined by 7%, however, this was offset by strong rates.
Income for the full year is expected to continue to be strong as the increase in freight rates on Maersk’s long-term contract portfolio will add approximately $10 billion to its revenue in 2021. Maersk noted this will offset the recent 21% rise in costs due to higher fuel and inflationary pressure.
The company’s Logistics business also saw a large upturn in revenue, rising 41% to $2.9bn. Maersk continues to invest in acquisitions including the recent takeover of Pilot Freight Services which was finalised on 2 May.