Maersk Lifts 2024 Guidance Again as Red Sea Disruption Boosts Rates
By Ben Glickman
A.P. Møller-Mærsk raised its full-year guidance again on Monday, as disruptions in the Red Sea and strong shipping demand continue to buoy rates.
The Danish shipper said Monday that it expected freight rates to continue to march higher through the rest of the year due to strong container market demand and continued disruption in the Red Sea. Mærsk said the development was gradually building up and would boost financial performance in the second half of the year.
Mærsk is revising its outlook for the second time in about a month. The company lifted the lower-end of its full-year forecast in early May, attributing the boost to similar factors.
Attacks in the Red Sea by Houthi rebels have prompted shippers to reroute their vessels, adding thousands of miles to trips and constraining shipping capacity.
Mærsk said it was now expecting Ebitda, or earnings before interest, tax, depreciation and amortization, of $7 billion to $9 billion, up from its previous forecast of $4 billion to $6 billion. Analysts polled by FactSet are expecting $6.09 billion in full-year Ebitda.
The company said it now expects free cash flow of at least $1 billion, compared with its previous outlook for at least negative $2 billion.
Mærsk said trading conditions were still more volatile than normal because of the unpredictability of the Red Sea situation and uncertainty about future supply and demand dynamics.
Write to Ben Glickman at ben.glickman@wsj.com
(END) Dow Jones Newswires
June 03, 2024 14:58 ET (18:58 GMT)
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