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A.P. Moller-Maersk
stock rose Wednesday as the shipping giant reported record profits in 2021 as the Covid recovery and strong demand led to surging freight rates.
The Danish company said it expects a “strong first half” of 2022 and assumes that the supply chain issues and freight rates will begin to normalize early in the second half of the year.
Despite that normalization, Maersk sees 2022 earnings reaching similar levels to its bumper 2021.
Shares in Maersk (ticker: MAERSK.B.Denmark) rose 2.6%. The stock is down more than 5% so far this year.
The shipping giant said net profit surged to $18 billion from $2.9 billion the previous year, while revenue rose to $61.8 billion from $39.7 billion. “Exceptional market conditions led to record-high growth and profitability,” CEO Soren Skou said.
The company expects full-year 2022 underlying earnings before interest, taxes, depreciation and amortization of around $24 billion, compared to $24.04 billion last year, but slightly below the $24.4 billion expected by analysts in a poll gathered by the company.
Its shipping unit is expected to grow in line with the global container demand of 2%-4% in 2022.
“Going forward, the global growth outlook remains strong for 2022, but risks are mounting for most regions,” Maersk said. The 2022 outlook for freight rates mainly rests on when market disruptions will normalize,” it added.
Separately on Wednesday, the company said it had agreed to buy Pilot Freight Services for $1.68 billion, from ATL Partners and British Columbia Investment Management Corporation, as it expands its logistics presence in the U.S.
The deal is subject to regulatory review and approval which is expected to be obtained by the second quarter of 2022, the company said in a statement.
Headquartered in Pennsylvania, U.S., Pilot provides first, middle and last mile solutions as well as border crossing solutions. The company specializes in business-to-consumer home delivery for big and bulky goods.
“Pilot will be adding specific new services within the fast growing big and bulky e-commerce segment, thus increasing cross-selling opportunities,” Maersk said.
