Maersk upgrades 2024 guidance on supply chain disruptions

Danish carrier Maersk has upgraded its 2024 guidance to an underlying EBITDA of $9-11 billion and EBIT of $3-5 billion (previously $7-9 billion and $1-3 billion, respectively), and free cash flow of at least $2 billion (previously at least $1 billion).

The upgrade is based on "continued supply chain disruption caused by the situation in the Red Sea, which is now expected to continue at least until the end of 2024, coupled with robust container market demand," says an official release.

Maersk reported an unaudited revenue of $12.8 billion, underlying EBITDA of $2.1 billion and underlying EBIT of $756 million for the second quarter of 2024.

"The outlook for the global container market volume growth for the full-year 2024 has been revised up to four-six percent (previously towards the upper end of 2.5-4.5 percent). Trading conditions remain subject to higher than normal volatility, given the unpredictability of the Red Sea situation and the lack of clarity of supply and demand in Q4."

Maersk will publish its full Q2 interim results on August 7, 2024, the release added.

Ocean Network Express (ONE) has more than doubled its profit forecast for FY22024 to $2.75 billion from the earlier estimate of $1 billion on likely higher rates and sustained demand.

ONE reported a 52 percent increase in profit at $779 million on higher rates for the first quarter ended June 30, 2024.