Denmark’s AP Moller Holding has logged its best-ever annual profit, but its chief executive has a stark warning for container lines.
Maersk family scion Robert Uggla said his company, which owns stakes in AP Moller-Maersk, Danske Bank, Maersk Tankers and wind power operations, had enjoyed “an extraordinary year”.
Net earnings of DKK 204.8bn ($29bn), up from DKK 118.9bn in 2021, were a record. Revenue rose to DKK 611bn against DKK 408m.
Ebitda hit DKK 266bn, with total assets standing at DKK 790bn.
Uggla said the all-time high results were due to strong container freight markets.
Maersk Tankers and Maersk Product Tankers also delivered strong results due to strong tanker markets.
But he said the year also provided a stark reminder that shipping companies operate in an extremely cyclical industry.
“Exceptionally strong consumer demand, particularly in the US, and unprecedented congestion across the global supply chains began to fade during 2022, giving way to a large inventory overhang correction,” Uggla added.
As a result, global container volumes declined during the last quarter of the year, bringing the total number of boxes transported back to 2017 levels.
Turning into headwinds
“The situation was especially challenging in Europe, where import volumes fell back to 2016 levels, in part because of the additional loss of Russian and Ukrainian volumes. As we entered 2023, the last few years’ strong tailwinds … had turned into headwinds with a bleak outlook for the period ahead,” he said.
AP Moller Holding focuses on investments in global trade and the energy transition, among other things.
“Our group navigated a volatile environment in 2022, with a pandemic coming to an end, the beginning of a brutal war in Ukraine, increased geopolitical fragmentation, congested supply chains, disrupted energy markets and rapidly rising inflation,” he said.
But there was “good momentum” on many fronts.
