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February 10, 2022

Maersk posts record 2021 profit on soaring freight rates

Last year, Maersk made long-term investments focused on decarbonisation growth.

Danish shipping company A P Moller – Maersk has reported a strong performance in 2021, with revenues increasing by 55% to $61.8bn last year from $39.7bn in 2020.

The firm’s EBITDA stood at $24bn in 2021, three times more than the 2020 figure of $8.2bn, while its free cash flow was $16.5bn last year.

As a result, the company was able to make long-term investments focused on decarbonisation and logistics growth, along with strong cash distribution to shareholders.

Maersk CEO Søren Skou said: “Exceptional market conditions led to record-high growth and profitability in A P Moller – Maersk, however it also led to supply chain disruptions and severe challenges for our customers.

“We spent tremendous efforts in mitigating bottlenecks by expanding capacity across Ocean, improving productivity in Terminals and growing our global logistics footprint. We will continue these efforts as we see the current market situation persist into Q2.”

In Maersk’s Logistics & Services business, revenue rose by 41% to $9.8bn in 2021 from $6.9bn in 2020.

Within Ocean, the firm’s profitability jumped to $48.2bn in 2021, compared to $29.2bn in the previous year.

Maersk attributed the surge to high freight rates due to the impact of the Covid-19 pandemic that caused disruptions in supply chains worldwide.

In the Terminals & Towage business, revenue increased from $3.8bn in 2020 to $4.7bn the following year.

The company also increased the capacity for equipment and ships to boost ‘predictability and reliability’.  

Contracted volumes were prioritised, with long-term contracts now standing at 65% from 50% in the prior year.

Last year, Maersk took over six businesses within aviation, e-commerce, warehousing and fulfilment, as well as unveiled 85 new warehouses.

The firm also expanded the use of digital solutions and services, with turnover on Maersk’s website reaching $38bn.

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