Management review
Highlights Q2 2023 ............................................................... 03
Summary financial information
................................................. 04
Review Q2 2023
.................................................................. 05
– Financials reflect a weakened growth environment
....................... 05
– ESG update
.................................................................... 06
Financial guidance and targets
.................................................. 07
Market insights
.................................................................... 08
Segments
.......................................................................... 09
– Ocean
.......................................................................... 09
– Logistics & Services
........................................................... 11
– Terminals
...................................................................... 12
– Towage & Maritime Services
................................................. 14
Review H1 2023
.................................................................. 15
Financials
Condensed income statement ................................................... 16
Condensed statement of comprehensive income
............................. 16
Condensed balance sheet at 30June
........................................... 17
Condensed cash flow statement
................................................ 18
Condensed statement of changes in equity
.................................... 19
Notes
............................................................................... 20
Management’s statement
........................................................ 24
Quarterly summary
............................................................... 25
Definition of terms
................................................................ 26
Improving life for all by integrating the world
At A.P. Moller - Maersk, we aspire to provide truly integrated logistics. Across oceans, ports, on land
and in the air, we are combining our supply chain infrastructure with the power of our people and
technology to drive end-to-end innovation that accelerates our customers’ success.
With a dedicated team of 110,000+ employees, operating in more than 130 countries, we explore
new frontiers and embrace new technologies because we see change as an opportunity. No matter
the challenge, we stay confident and resilient because our values are constant. By living our values,
we inspire trust in our efforts to integrate the world and improve life for all.
Contents
Contacts for further information
Vincent Clerc
CEO
Patrick Jany
CFO
Investors
Stefan Gruber
Head of Investor Relations
Tel. +45 3363 3106
Media
Jesper Lov
Head of Media Relations
Tel. +45 3363 1901
Webcast and dial-in information
A webcast relating to the Q2 2023
Interim Report will be held on 4 August
2023 at 11.00 (CET). Dial-in infor mation
on investor.maersk.com.
Presentation material for the webcast
will be available on the same page.
The Interim Report for Q2 2023 of
referred to as A.P. Moller - Maersk as
the consolidated group of companies)
has been prepared in accordance with
IAS 34 ‘Interim Financial Reporting’ as
issued by the International Accounting
Standards Board (IASB) and adopted
by the EU and additional Danish disclo-
sure requirements for interim financial
reporting of listed companies.
The interim consolidated financial
statements have not been subject to
audit or review.
Comparative figures
Unless otherwise stated, all figures in
parentheses refer to the corresponding
figures for the same period prior year.
Financial calendar
03 November
Interim Report Q3 2023
08 February 2024
Annual Report 2023
Produced in Denmark
2
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 4 AUGUST 2023
Management review
Highlights Q2 USD million
Revenue EBITDA EBIT CAPEX
2023 2022 2023 2022 2023 2022 2023 2022
Ocean 8,703 17,412 2,259 9,598 1,205 8,526 314 517
Logistics & Services 3,386 3,502 311 337 115 234 223 286
Terminals 950 1,124 331 400 269 316 97 105
Towage & Maritime Services 504 579 59 81 71 16 99 93
Unallocated activities, eliminations, etc. -555 -967 -55 -89 -53 -104 5 7
A.P. Moller - Maersk consolidated 12,988 21,650 2,905 10,327 1,607 8,988 738 1,008
A.P. Moller - Maersk reports robust Q2 financial results, as volume and rate trends unfolded as expected.
The pace of revenue decline moderated as rates continued to come off their 2022 peak and volumes
remained weak due to continued destocking particularly in North America and Europe.
A.P. Moller - Maersk continue to expect muted global macro-economic growth given continued pressure
from higher interest rates and potential recessionary risk in Europe and the US. Given the weak start of the
year and the continued destocking, A.P. Moller - Maersk now sees the global container volume growth in the
range of -4% to -1% compared to -2.5% to +0.5% previously.
While this implies lower second half volumes than originally expected A.P. Moller - Maersk raises its full year
financial guidance reflecting the strong financial performance in the first half of the year.
Cost measures provided a strong support to profitability in the second quarter and will continue to be
sharpened across all segments given the lower level of expected activity in the second half.
Highlights Q2 2023
Revenue for Q2 decreased by USD 8.7bn to USD 13.0bn (USD 14.2bn in Q1) led by USD 8.7bn lower revenue from Ocean, and lower
revenue of USD 116m and USD 174m from Logistics & Services and Terminals, respectively. EBITDA decreased by USD 7.4bn to USD 2.9bn
(USD 4.0bn in Q1), driven by a USD 7.3bn lower contribution from Ocean. EBIT decreased by USD 7.4bn to USD 1.6bn (USD 2.3bn in Q1)
with USD 7.3bn stemming from Ocean.
Ocean continued to be impacted by the ongoing normalisation after the 2022 peak and by lower demand, driven by a prolonged
and significant inventory correction. These difficult market conditions were further challenged by having new tonnage being
phased in. The result was lower volumes and rates that continued to erode, albeit at a slower pace than in the previous periods.
A strong cost drive managed to offset part of the top line impact and deliver a result ahead of the company’s expectations.
Logistics & Services business performance continues to be impacted by lower volumes as a result of continued destocking
and lower consumer demand as well as lower rates, particularly in the Air market. As in Ocean, market demand is expected to
continue to be subdued as long as the destocking process lasts.
Terminals’ top line was influenced by the normalisation of storage revenue and lower volume due to lower demand and less
congestion in North America, but strong cost control contributed to a continued solid financial performance.
Free cash flow of USD 1.6bn (USD 6.8bn) declined due to decreased cash flow from operating activities and repayment of lease
liabilities, slightly offset by higher financial income and lower capital expenditures.
The divestment of Maersk Supply Service to A.P. Møller Holding A/S was closed in May 2023.
A.P. Moller - Maersk continued to progress on its decarbonisation roadmap with an order of additional six green methanol enabled
vessels and additional 25 e-trucks for low-carbon transport. In July, the international Maritime Organization (IMO) adopted a significant
agreement aiming to secure that the industry reaches net zero by 2050, supporting A.P. Moller - Maersk’s own targets.
Management review I Highlights Q2 2023
3
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 4 AUGUST 2023
Q2 Q2 6M 6M 12M
Income statement 2023 2022 2023 2022 2022
Revenue 12,988 21,650 27,195 40,942 81,529
Profit before depreciation, amortisation and impairment losses, etc. (EBITDA) 2,905 10,327 6,874 19,411 36,813
Depreciation, amortisation and impairment losses, net 1,571 1,418 3,451 2,925 6,186
Gain on sale of non-current assets, etc., net 163 37 303 64 101
Share of profit/loss in joint ventures and associated companies 110 42 207 -289 132
Profit before financial items (EBIT) 1,607 8,988 3,933 16,261 30,860
Financial items, net -16 -203 174 -497 -629
Profit before tax 1,591 8,785 4,107 15,764 30,231
Tax 104 164 297 335 910
Profit for the period 1,487 8,621 3,810 15,429 29,321
A.P. Møller - Mærsk A/S ’ share 1,453 8,593 3,737 15,369 29,198
Underlying profit
1
1,346 8,553 3,907 16,022 29,703
Balance sheet
Total assets 83,500 80,426 83,500 80,426 93,680
Total equity 56,427 52,586 56,427 52,586 65,032
Invested capital 49,343 49,195 49,343 49,195 52,410
Net interest-bearing debt -7,090 -3,356 -7,090 -3,356 -12,632
Cash flow statement
Cash flow from operating activities 2,758 8,611 8,092 16,832 34,476
Capital lease instalments – repayments of lease liabilities 822 762 1,647 1,408 3,080
Gross capital expenditure, excl. acquisitions and divestments (CAPEX) 738 1,008 1,576 2,362 4,163
Cash flow from financing activities -3,334 -3,046 -14,060 -10,566 -14,135
Free cash flow 1,581 6,844 5,805 12,858 27,107
Financial ratios
Revenue growth -40.0% 52.1% -33.6% 53.5% 32.0%
EBITDA margin 22.4% 47.7% 25.3% 47.4% 45.2%
EBIT margin 12.4% 41.5% 14.5% 39.7% 37.9%
Cash conversion 95% 83% 118% 87% 94%
Return on invested capital after tax (ROIC) (last twelve months) 34.3% 62.5% 34.3% 62.5% 60.4%
Equity ratio 67.6% 65.4% 67.6% 65.4% 69.4%
Underlying ROIC
1
(last twelve months) 34.1% 64.2% 34.1% 64.2% 61.2%
Underlying EBITDA
1
2,916 10,289 6,953 19,475 36,843
Underlying EBITDA margin
1
22.5% 47.5% 25.6% 47.6% 45.2%
Underlying EBIT
1
1,469 8,924 4,032 16,861 31,244
Underlying EBIT margin
1
11.3% 41.2% 14.8% 41.2% 38.3%
Stock market ratios
Earnings per share, USD 85 466 217 830 1,600
Diluted earnings per share, USD 85 464 216 827 1,595
Cash flow from operating activities per share, USD 163 467 469 909 1,889
Share price (B share), end of period, DKK 11,975 16,555 11,975 16,555 15,620
Share price (B share), end of period, USD 1,745 2,313 1,745 2,313 2,242
Total market capitalisation, end of period, USD 29,273 42,108 29,273 42,108 39,135
1 Definition of terms See page 26.
Summary financial information
AMOUNTS IN USD MILLION
Management review I Summary financial information
4
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 4 AUGUST 2023
Financials reflect a weakened growth
environment
Revenue decreased by USD 8.7bn to USD 13.0bn (USD 21.7bn) in
Q2 2023, with a decrease in Ocean by USD 8.7bn, in Logistics &
Services by USD 116m and in Terminals by USD 174m.
The results reflect the normalisation of the COVID-19 implied
peak which resulted in lower volumes and lower rates com-
pared to Q2 2022 and a further reduction compared to Q1 2023,
also impacted by the prolonged inventory correction.
EBITDA decreased to USD 2.9bn (USD 10.3bn) due to lower
revenue, with a decrease in Ocean of USD 7.3bn a decrease in
Logistics & Services of USD 26m and in Terminals by USD 69m.
Ocean
(Q2 2022: 9.6bn)
Logistics & Services
(Q2 2022: 337m)
Terminals
(Q2 2022: 400m)
2.3bn 311m 331m
Review Q2 2023
EBIT decreased to USD 1.6bn (USD 9.0bn), with an EBIT margin
of 12.4% (41.5%), negatively impacted by the decreased EBITDA,
specifically in Ocean. In Logistics & Services, the EBIT margin was
3.4% (6.7%) due to volume and rate pressures and an increased
cost pressure given the expanded footprint, including higher
depreciation and amortisation from acquisitions.
Ocean
(Q2 2022: 8.5bn)
Logistics & Services
(Q2 2022: 234m)
Terminals
(Q2 2022: 316m)
1.2bn 115m 269m
Financial items, net, was a loss of USD 16m (loss of USD 203m)
positively impacted by an increased interest income partly off-
set by interest expenses and foreign exchange rate impact.
Tax decreased to USD 104m (USD 164m), primarily due to lower
profit before tax.
Multi-year comparison of financials
From 2020 to 2022, the supply side of the logistics industry was
disrupted by COVID-19, which accelerated already existing issues in
the global supply chains with a significant impact on world trade.
The demand for logistics services significantly increased, and, in turn,
freight rates saw all-time highs due to capacity shortages, where
container availability and air capacity remained tight, and wait times
for vessels outside of ports remained lengthy given the bottlenecks
in landside transportation and warehousing.
As a result of this exceptional market, freight rates peaked in Q3
2022, which was the 16th quarter in a row with year-on-year earn-
ings growth for A.P. Moller - Maersk. After that, the high demand
eventually started to normalise as congestions eased, and consumer
demand declined leading to an inventory overhang, the correction
of which resulted in rapid and steep declines in shipped volumes
starting in late Q3 2022.
In H1 2023, this normalisation continued, reinforced by a lower growth
and inflationary environment.
Selected financials for Q2 2019-2023 USD million
Q2 Q2 Q2 Q2 Q2
Income statement 2023 2022 2021 2020 2019
Revenue 12,988 21,650 14,230 8,997 9,627
Ocean 8,703 17,412 11,072 6,570 7,196
Logistics & Services 3,386 3,502 2,168 1,569 1,579
Terminals 950 1,124 969 723 806
Profit before depreciation, amortisation and impairment losses, etc. (EBITDA) 2,905 10,327 5,064 1,697 1,357
Profit before financial items (EBIT) 1,607 8,988 4,084 751 416
Profit for the period 1,487 8,621 3,746 443 154
Cash flow statement
Cash flow from operating activities 2,758 8,611 4,137 1,867 1,170
Gross capital expenditure, excl. acquisitions and divestments (CAPEX) 738 1,008 452 362 445
Free cash flow 1,581 6,844 3,230 1,051 270
Financial ratios
Revenue growth -40.0% 52.1% 58.2% -6.5% 0.6%
EBITDA margin 22.4% 47.7% 35.6% 18.9% 14.1%
EBIT margin 12.4% 41.5% 28.7% 8.3% 4.3%
Management review I Review Q2 2023
5
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 4 AUGUST 2023
The underlying profit of USD 1.3bn (USD 8.6bn) was adjusted
for net gains primarily from the sale of vessels and containers
in Ocean of USD 134m and the net gain from the sale of Maersk
Supply Service of USD 15m.
Cash flow from operating activities of USD 2.8bn (USD 8.6bn)
was driven by EBITDA of USD 2.9bn and improved change in net
working capital of USD 145m, translating into a solid cash con-
version of 95% (83%).
Gross capital expenditure (CAPEX) of USD 738m (USD 1.0bn)
was primarily driven by lower container investments in Ocean.
Free cash flow of USD 1.6bn (USD 6.8bn) was impacted by the
decreased cash flow from operating activities and higher repay-
ments of lease liabilities, slightly offset by higher financial
income and lower capital expenditures.
Share buy-back
During Q2, A.P. Moller - Maersk bought back 85,837 A shares
and 355,199 B shares, worth DKK 5.4bn (approximately USD
792m), and no shares were bought for the long-term incentive
programme. At 30 June 2023, A.P. Moller - Maersk owns a total
of 132,232 A shares and 585,411 B shares as treasury shares,
corresponding to 4.08% of the share capital.
The Annual General Meeting has authorised the Board of Directors
to allow the company to acquire own shares to the extent that
the nominal value of the company’s total holding of own shares
at no time exceeds 15% of the company’s share capital.
At the Annual General Meeting of A.P. Møller - Mærsk A/S on
28 March 2023, the shareholders decided on the cancellation of
treasury shares whereby the share capital would be decreased
by nominally DKK 1,137,446,000 in total divided into 227,390
A shares and 910,056 B shares of DKK 1,000. The cancellation
was completed during Q2 2023.
Net interest-bearing debt changed to a net cash position of USD
7.1bn (a net cash position of USD 12.6bn at year-end 2022), as free
cash flow for the first six months of USD 5.9bn and sale of com-
panies of USD 720m partly offset share buy-backs of USD 1.6bn
and dividends of USD 10.9bn. Further, lease liabilities decreased
by USD 646m. Excluding lease liabilities, the Group had a net
cash position of USD 18.1bn (USD 24.2bn at year-end 2022).
A.P. Moller - Maersk is investment grade-rated and holds a Baa2
(positive outlook) from Moody’s and a BBB+ (stable) rating from
Standard & Poor’s.
The liquidity reserve decreased to USD 26.9bn (USD 33.3bn at
year-end 2022) and was composed of cash and bank balances
(excluding restricted cash), term deposits and securities of USD
20.9bn (USD 27.3bn at year-end 2022) and undrawn revolving
credit facilities of USD 6.0bn (USD 6.0bn at year-end 2022).
ESG update
For a full overview of A.P. Moller - Maersk’s ESG strategy and
roadmap, please see www.maersk.com/sustainability
Continued investments in decarbonising the industry
In June 2023, A.P. Moller - Maersk made an order of six addi-
tional mid-sized container vessels with dual-fuel engines able
to operate on both green methanol and fuel oil to be delivered
in 2026 and 2027, replacing existing network capacity in the
A.P. Moller - Maersk fleet. The company’s order book for dual fuel
methanol vessels now totals 25 and when operated on green fuels,
they are expected to reduce greenhouse gas emissions by approxi-
mately 2.7 million tonnes per year. A.P. Moller - Maersk has further
signed an agreement with MAN Energy Solutions to retro fit an
existing vessel to a dual-fuel methanol powered vessel capable
of operating on green methanol, a first in the shipping industry.
Already in September 2023, A.P. Moller - Maersk will welcome
its first green fuel-powered vessel, the world’s first methanol-
enabled container vessel. In June 2023, A.P. Moller - Maersk signed
an agreement with OCI Global, successfully securing green meth-
anol for the first voyage. A.P. Moller - Maersk continues to invest
in new technologies for producing green fuels, as well as solutions
for accessing green fuels.
Just two years after A.P. Moller - Maersk ordered the world’s first
methanol-enabled container vessel, committing to only ordering
new-built vessels that can sail on green fuels, the global orderbook
stands at more than 100 methanol-enabled vessels, demonstrating
a positive uptake of methanol as a green fuel in the industry.
Progress also continues landside in the decarbonisation of truck-
ing services. A.P. Moller - Maersk has purchased additional 25 Volvo
electric trucks for low carbon container transports in Germany
to be delivered over Q4 2023 and Q1 2024. The purchase of fully
electric trucks is supported by the German Federal Ministry for
Digital and Transport. A.P. Moller - Maersk plans to set up charging
infrastructure with green electricity for the own e-truck fleet at
its warehouses in Germany.
IMO MEPC80 – clear timeline for net zero by 2050
In July, a milestone agreement on the decarbonisation of ship-
ping was adopted by the International Maritime Organization
(IMO) which will serve as a catalyst for the transformation of
the shipping industry. Within the next four years, it will secure
that the needed measures are developed and rolled-out. This
should reduce investment risks in green fuels and enhance their
competitiveness compared to fossil fuels. The agreement high-
lights the imperative of achieving net zero emissions in the ship-
ping industry by 2050, and establishes an ambitious timeline
for implementing measures, including the adoption of a global
GHG price and a global standard for green fuels. Enforcement of
these measures will commence in 2027. The agreement explicitly
acknowledges the importance of life cycle assessments (LCAs)
and the consideration of all relevant greenhouse gases. Inter-
mediate targets have been set to decrease annual greenhouse gas
emissions from international shipping by at least 20% (striving
for 30%) by 2030, and by at least 70% (striving for 80%) by 2040,
compared to a 2008 baseline.
Management review I Review Q2 2023
6
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 4 AUGUST 2023
Financial guidance and targets
Financial guidance for 2023
The inventory correction observed since Q4 2022 appears to
be prolonged and is now expected to last through year end.
Based on the continued destocking, A.P. Moller - Maersk now
sees global container volume growth in the range of -4% to -1%
compared to -2.5% to +0.5% previously. Ocean expects to grow
in-line with the market.
For the full-year 2023, A.P. Moller - Maersk raises its financial
guidance as seen in the table below.
A.P. Moller - Maersk now expects CAPEX to be at the lower end
of the previously communicated ranges of USD 9.0-10.0bn for
2022-2023 and USD 10.0-11.0bn for 2023-2024.
CAPEX guidance 2022-2023 CAPEX guidance 2023-2024
9.0-10.0 10.0-11.0
USDbn
EBITDA Underlying
(Previously: 8.0-11.0)
EBIT Underlying
(Previously: 2.0-5.0)
Free cash flow at least
(Previously: 2.0)
9.5-11.0 3.5-5.0 3.0
Sensitivity guidance
Financial performance for A.P. Moller - Maersk for 2023 depends on several
factors subject to uncertainties related to the given uncertain macro-
economic conditions, bunker fuel prices and freight rates. All else being
equal, the sensitivities for 2023 for four key assumptions are listed below:
Factors Change Effect on EBIT
(Rest of 2023)
Container freight rate +/- 100 USD/FFE +/- USD 0.6bn
Container freight volume +/- 100,000 FFE +/- USD 0.1bn
Bunker price
(net of expected BAF coverage) +/- 100 USD/tonne +/- USD 0.2bn
Foreign exchange rate
(net of hedges) +/- 10% change in USD +/- USD 0.1bn
Roadmap towards 2025
The mid-term financial targets were introduced at the
Capital Markets Day in May 2021 and relate to the trans-
formation towards becoming the integrator of container
logistics.
Consolidated
The return on invested capital (ROIC) (last twelve months)
was 34.3%, well above the target of above 7.5% every
year under normalised conditions, and above 12% for the
period 2021-2025, driven by the increase in profit in par-
ticular in 2021 and 2022.
A.P. Moller - Maersk will prioritise the capital allocation
to investments in the business, including acquisitions in
Logistics & Services, repaying debt, paying dividends based
on a pay-out ratio of 30-50% of underlying net profit and
distributing excess cash to shareholders through share
buy-backs and special dividends in that order.
A.P. Moller - Maersk’s share buy-back programme, orig-
inally planned for USD 5.0bn over 2022-2023, has been
progressively extended to USD 12.0bn over 2022-2025
or USD 3.0bn annually. Of the planned share buy-back of
DKK 39.3bn (around USD 6.0bn) for the years 2022-2023,
A.P. Moller - Maersk has bought back DKK 33.1bn (USD
4.7bn) as of Q2 2023.
Ocean
Ocean delivered an EBIT margin of 33.5% over the last
twelve months, well above the target of 6% under nor-
malised conditions. Total average operated fleet capacity
is within the range of 4.1-4.3m TEU.
Logistics & Services
For Logistics & Services, organic growth of -3% over the
last twelve months was below the target of 10%. The EBIT
margin for the last twelve months was 4.3% versus the
target of above 6%. While performance is expected to
improve sequentially, it is not expected that the 6% EBIT
target will be achieved for 2023 with the current limited
signs of a substantial rebound in volumes in H2 2023.
Terminals
The return on invested capital (ROIC) (LTM) was 11.4%
for Terminals, exceeding the expectation of above 9%
towards 2025.
Forward-looking statements
The Interim Report contains forward-looking statements. Such state-
ments are subject to risks and uncertainties as several factors, many of
which are beyond A.P. Moller - Maersk’s control, may cause the actual
development and results to differ materially from expectations contained
in the Interim Report.
Management review I Financial guidance and targets
7
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 4 AUGUST 2023
Global economic growth is projected to hover around 2% in 2023.
Despite the improvement in Q1, cracks began to appear in the
economic outlook in Q2. In China, the re-opening recovery that
followed the end of the zero-COVID policy lost steam, and the
local property sector shows no signs of a rebound. In the US and
Europe, the rapid increase in interest rates created stress in the
banking sector in H1 2023 and concerns have emerged about
potential spill-overs to other financial institutions. Survey indi-
cators point to flat growth, at best, in Europe and the US in H2
of 2023 and the start of 2024, with a material risk of recession
in both regions. The manufacturing sector continues to struggle,
and the Global Purchasing Managers Index has remained in con-
tractionary territory since September 2022.
Final demand has started to weaken, with investment spending,
both capital expenditure and housing, suffering from the rapid
increase in interest rates. Consumers in Europe have continued
to adjust their goods spending in Q2. The drop was modest in the
Euro area, with retail trade down 1.7% in April-May (y/y). It was
more severe in the UK, where goods consumption dropped 2.3%
(y/y). In the US, goods consumption growth remained in posi-
tive territory in April-May (1.1% y/y), but sequential growth has
clearly slowed. Meanwhile, the inventory correction is still run-
ning its course. While the inventory-to-sales ratio has improved
for retailers, it remained high among wholesalers, indicating that
efforts to align inventories with demand are underway, but there
is still work to be done, which will continue to affect the logistics
activities across all segments.
The combination of recession concerns and high inventories has
resulted in poor demand growth for container trade and logistics
services. In Q2, the demand for containers declined between
4.0% and 6.5% year-on-year, due to weak import growth into
North America, Oceania and Far East Asia. Imports into Europe
showed signs of improvement in Q2 following a very weak run,
and together with positive import growth into West Central Asia,
and sustained improvement in imports into Africa, offset some
of the weakness elsewhere.
On the supply side of the Ocean market, the increasing stream
of vessel deliveries and still limited scrapping activity is push-
ing up fleet growth. Globally, the nominal container fleet stood at
27.3m TEU at the end of Q2 2023, an increase of 6% compared to
Q2 2022. Moreover, easing supply chain bottlenecks and weaker
demand on long-haul trades is releasing capacity to the market.
SeaIntel data shows that the share of the Global container fleet
absorbed by delays decreased from a peak in January 2022 of
almost 14% to a post-pandemic low of 3.6% in May 2023. Some of
the available capacity is being absorbed by slower steaming and
cancelled sailings. According to Clarksons containership average
speed declined 3%, from 14.4 knots in Q2 2022 to 13.9 knots in
Q2 2023. However, the gap between demand and supply growth
continued to widen in Q2 in year-on-year terms. Scrapping activ-
ity was muted in the first half of the year, but it is expected to
increase going forward. The deterioration in the supply-demand
balance has put downward pressure on freight rates since Q3
Market insights
2022. The SCFI Composite Index average was 985 in Q2 2023,
compared to 4,208 for the same last year and 772 in 2019.
Air freight volumes fell again in Q2 (y/y), although the pace of
declines has slowed compared to Q1. However, the improve-
ment was more due to a base effect than to a meaningful pick
in demand. By region, North America saw Cargo Tonne Kilometre
(CTK) volumes fall an average of 11% during April and May, while
in Asia-Pacific and Europe volumes were down 2% and 7% respec-
tively (IATA). At the same time, the return of passenger flights
expanded the capacity further. According to IATA, global cargo
load factors were 42.1% in April and May compared to 45.5% in
Q1, and rates deteriorated further. The Baltic Airfreight rate was
USD 2.15/kg in Q2, 46% down compared to a year before.
Road freight demand weakened in the US in Q2. The seasonally
adjusted ATA Truck Tonnage Index decreased by 1.3% in May - the
third consecutive year-on-year decrease. The deterioration is also
visible in rates. However, unlike for container trade, these are still
well above pre-pandemic levels, suggesting further deterioration
may be in sight.
In the US, demand for warehousing has begun to pull back with
Prologis forecasting an average 4.3% vacancy rate in 2023, up
from 3.1% in 2022. Prologis’ forecast for “true months of supply”
(a measure of how much time would be required to absorb all
available supply) currently stands at 34, more than double the
2021 reading. Vacancy rates for warehousing are expected to rise
further in the US and Europe in the second half of 2023, however
they will remain close to 2022 lows.
Overall, the environment for container trade and logistics services
remains challenging. Currently there is no sign of a substantial
rebound in volumes in the second half of the year. As a conse-
quence, the expected full-year 2023 demand growth for global
container trade is revised to -4% to -1%. Similarly, demand for air
freight is expected to be in the -5% to -2% range.
Automotive
Lifestyle
Retail
Technology
Global
Source: Internal market estimations.
Internal Source: CMD Version (M202306).
Container trade volumes,
by vertical
Index (FY2019=100) 4QMA
Q1 Q2 Q3 Q4 Q1Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4
2019 2020 2021 20232022
125
105
85
Management review I Market insights
8
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 4 AUGUST 2023
Ocean
In line with expectations, Q2 saw the continued impact of lower
rates and volumes as a result of the ongoing normalisation and
the continued destocking of inventory given reduced global
demand in a weakened growth environment. Market conditions
resulted in an overall decrease of 6.1% in loaded volumes compared
to Q2 2022, primarily driven by a decrease in North America,
Intra Asia, and in India and Middle East markets.
The average loaded freight rate decreased by 51% compared to
Q2 2022 and 15% compared to Q1 2023, driven by contract and
shipment rates, primarily on East-West trades. The unit cost
at fixed bunker decreased by 1.0% compared to Q2 2022, driven
by lower network and container handling costs. Utilisation on
offered capacity at 91% on par with Q2 2022, was an improve-
ment of three percentage points compared to Q1 2023. Global
congestion has dissipated, and schedule reliability improved
compared to Q2 2022 and Q1 2023.
Financial and operational performance
Revenue decreased by USD 8.7bn to USD 8.7bn (USD 17.4bn),
driven by a decrease in freight revenue of 52% with loaded
Ocean highlights USD million
Q2
2023
Q2
2022
6M
2023
6M
2022
12M
2022
Freight revenue 7,414 15,350 15,845 28,910 56,499
Other revenue, including hubs 1,289 2,062 2,731 4,072 7,800
Revenue 8,703 17,412 18,576 32,982 64,299
Container handling costs 2,258 2,623 4,520 5,167 10,214
Bunker costs 1,440 2,193 2,947 3,843 8,077
Network costs, excluding bunker costs 1,692 1,844 3,381 3,805 7,516
Selling, General & Administration (SG&A) costs 711 749 1,481 1,426 2,947
Cost of goods sold and other operational costs 358 396 695 828 1,835
Total operating costs 6,459 7,805 13,024 15,069 30,589
Other income/costs, net 15 -9 59 -101 60
Profit before depreciation, amortisation and impairment losses, etc. (EBITDA) 2,259 9,598 5,611 17,812 33,770
EBITDA margin 26.0% 55.1% 30.2% 54.0% 52.5%
Profit before financial items (EBIT) 1,205 8,526 3,174 15,598 29,149
EBIT margin 13.8% 49.0% 17.1% 47.3% 45.3%
Invested capital 29,064 33,422 29,064 33,422 32,368
Gross capital expenditure, excl. acquisitions and divestments (CAPEX) 314 517 852 1,673 2,620
Operational and financial metrics
Loaded volumes (FFE in ’000) 2,906 3,095 5,630 6,101 11,924
Loaded freight rate (USD per FFE) 2,444 4,983 2,651 4,771 4,628
Unit cost, fixed bunker (USD per FFE incl. VSA income)
1
2,389 2,413 2,470 2,469 2,533
Bunker price, average (USD per tonne) 592 827 608 718 763
Bunker consumption (tonne in ’000) 2,432 2,651 4,844 5,350 10,579
Average operated fleet capacity (TEU in ’000) 4,136 4,282 4,176 4,286 4,285
Fleet owned (end of period) 310 318 310 318 318
Fleet chartered (end of period) 369 413 369 413 389
1 The 2022 Unit cost, fixed bunker figures have been restated as a result of the fixed bunker price being restated to 550 USD/tonne from 450 USD/tonne.
Segments
Ocean performance Q2 2019-2023 USD million
Q2 Q2 Q2 Q2 Q2
2023 2022 2021 2020 2019
Revenue 8,703 17,412 11,072 6,570 7,196
Total operating
costs 6,459 7,805 6,610 5,156 6,131
EBIT 1,205 8,526 3,580 552 260
EBIT margin 13.8% 49.0% 32.3% 8.4% 3.6%
Operational and
financial metrics
Loaded volumes 2,906 3,095 3,341 2,903 3,447
Loaded freight rate 2,444 4,983 3,038 1,915 1,832
Unit cost, fixed
bunker 2,389 2,413 2,121 2,101 1,964
freight rates down by 51% and loaded volumes down by 6.1%.
Revenue decreased by USD 1.2bn or 12% compared to Q1 2023.
EBITDA decreased by USD 7.3bn to USD 2.3bn (USD 9.6bn) due to
lower revenue. The EBITDA margin decreased by 29 percentage
Management review I Segments I Ocean
9
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 4 AUGUST 2023
points to 26.0% (55.1%). Similarly, EBIT decreased by USD 7.3bn
to USD 1.2bn (USD 8.5bn). EBITDA decreased by USD 1.1bn or 33%
and EBIT decreased by USD 764m or 39% compared to Q1 2023.
Loaded volumes decreased by 6.1% to 2,906k FFE (3,095k FFE)
due to weaker demand, for North America, Intra Asia, India and
Middle East markets. Loaded volumes increased by 182k FFE or
6.7% compared to Q1 2023.
The average loaded freight rate decreased by 51% to 2,444
USD/FFE compared to Q2 2022 (4,983 USD/FFE), driven by a rate
decline in most trades. The average loaded freight rate decreased
by 427 USD/FFE or 15% compared to Q1 2023 (2,871 USD/FFE).
Total operating costs were 17% lower at USD 6.5bn (USD 7.8bn),
driven by lower bunker costs, lower container handling costs and
lower slot charter costs, which decreased by 34%, 14% and 28%
respectively, compared to Q2 2022. The net impact of foreign
exchange rates was negligible. Total operating costs decreased
by USD 106m or 1.6% compared to Q1 2023.
Bunker costs decreased by 34% to USD 1.4bn (USD 2.2bn), driven
by a decrease in bunker price of 28% to 592 USD/tonne (827 USD/
tonne) and an 8.3% decrease in bunker consumption. Bunker effi-
ciency improved by 2.9% to 40.7 g/TEU*NM (41.9 g/TEU*NM).
Bunker costs decreased by USD 67m or 4.4% compared to Q1 2023.
Unit cost at fixed bunker decreased by 1.0% to 2,389 USD/FFE
(2,413 USD/FFE), driven by lower network and container handling
costs offset by lower volumes. The net impact of foreign exchange
rates was negligible. Unit cost at fixed bunker decreased by 163
USD/FFE or 6.4% compared to Q1 2023.
The average operated capacity of 4,136k TEU (4,282k TEU)
decreased by 3.4% compared to Q2 2022. The current order
book for carbon-neutral vessels totals 25 at the end of Q2 2023,
including one feeder vessel to be delivered in Q3 2023. The fleet
consisted of 310 owned and 369 chartered vessels, of which
254k TEU or 6.1% (35 vessels) of the fleet were idle, including
dry docking and repairs.
Key developments in 2023
Ocean continues to focus on strengthening long-term partner-
ships with key clients while aiming to provide the most reliable
products in the market. The contract volume share of total was
68% in Q2, which is one percentage point lower than in Q2 2022
and one percentage point higher than Q1 2023.
Global congestion has eased significantly in 2023, where net-
work initiatives implemented this quarter are designed to further
improve service delivery measures and lower CO
2
emissions.
To maximise asset utilisation, capacity has diligently been allo-
cated to markets with the strongest demand.
Several actions have been put in place to neutralise the impact of
inflation on the costs of operations while maintaining focus on the
quality and reliability of the Ocean products. A.P. Moller - Maersk
was among the best in industry for schedule reliability in Q2,
and this remains a key focus.
Loaded volumes FFE (’000)
Q2 2023 Q2 2022 Change Change %
East-West 1,298 1,434 -136 -9.5
North-South 979 961 18 1.9
Intra-regional 629 700 -71 -10.1
Total 2,906 3,095 -189 -6.1
Average freight rates USD/FFE
Q2 2023 Q2 2022 Change Change %
East-West 2,382 5,598 -3,216 -57.4
North-South 3,207 5,713 -2,506 -43.9
Intra-regional 1,673 2,992 -1,319 -44.1
Total 2,444 4,983 -2,539 -51.0
Financial review H1 2023
Revenue decreased by 44% to USD 18.6bn (USD 33.0bn), driven by
a decrease in loaded freight rate of 44% and 7.7% less volumes.
The EBITDA margin decreased by 24 percentage points to 30.2%
at USD 5.6bn (USD 17.8bn), and the EBIT margin decreased by
30 percentage points to 17.1% at USD 3.2bn (USD 15.6bn).
Total operating costs decreased by 14% to USD 13.0bn (USD
15.1bn), driven by decrease in bunker costs of 23% due to both
lower price and lower consumption, lower container- handling
costs of 13% and lower network costs excl. bunker of 11%. Adjust-
ing for the positive impact of foreign exchange rates, operating
costs decreased by 13%.
Fleet overview, end Q2 2023
Q2 2023 Q4 2022
'000 TEU
Own container vessels 2,364 2,393
Chartered container vessels 1,786 1,828
Total fleet capacity 4,150 4,221
Number of vessels
Own container vessels 310 318
Chartered container vessels 369 389
Total fleet 679 707
Ocean performance H1 2019-2023 USD million
H1 H1 H1 H1 H1
2023 2022 2021 2020 2019
Revenue 18,576 32,982 20,550 13,800 14,211
Total operating
costs 13,024 15,069 12,618 11,520 12,180
EBIT 3,174 15,598 6,280 900 396
EBIT margin 17.1% 47.3% 30.6% 6.5% 2.8%
Operational and
financial metrics
Loaded volumes 5,630 6,101 6,563 5,951 6,597
Loaded freight rate 2,651 4,771 2,853 1,942 1,861
Unit cost,
fixed bunker 2,470 2,469 2,098 2,105 2,058
Management review I Segments I Ocean
10
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 4 AUGUST 2023
Logistics & Services
Logistics & Services business performance continues to be
impacted by lower volumes as a result of continued destocking
and lower consumer demand as well as from lower rates, par-
ticularly in the Air market. The logistics and services industry
demand has deteriorated with limited signs of a substantial
rebound in volumes in the second half of the year.
Accordingly, while the significant effort in technology with the
rollout of new platforms is prone to continue, an increased
focus on cost management will allow to adapt the increased
footprint to the lower level of expected activity.
Financial and operational performance
Revenue decreased by 3.3% to USD 3.4bn (USD 3.5bn) driven
primarily by lower volumes in the retail and lifestyle sectors,
in particular in North America, as well as lower rates.
Organic revenue growth was negative 19%, affected by lower
overall volumes and decreased air freight rates. The 2022 acqui-
sitions of Pilot, LF Logistics and Senator International and the
2023 acquisitions of Martin Bencher Group and Grindrod Logistics
contributed with revenue growth of USD 560m in Q2 2023.
In Q2 2023 half of the decline in organic revenue was driven by
the top 200 customers.
EBITA was USD 158m (USD 262m) affected by volatile freight
markets driving lower volumes and rates and a higher cost base
given the increased footprint and breadth of activities. Organic
EBITA decreased by USD 125m compared to Q2 2022.
Managed by Maersk revenue decreased by USD 73m to USD
535m (USD 608m), affected by 13% lower volumes from exist-
ing customers in supply chain management, partly offset by
growth from the Martin Bencher Group integration.
Fulfilled by Maersk revenue increased by USD 152m to USD
1.3bn (USD 1.1bn), primarily driven by inorganic growth from
LF Logistics and Pilot.
Transported by Maersk revenue decreased by USD 195m to USD
1.6bn (USD 1.8bn), driven by lower revenue from lower volumes
in landside transportation, LCL and Air and also lower rates
particularly in Air and LCL. This was partly offset by inorganic
Logistics & Services highlights USD million
Q2
2023
Q2
2022
6M
2023
6M
2022
12M
2022
Revenue 3,386 3,502 6,857 6,381 14,423
Direct costs (third-party costs) 2,341 2,610 4,770 4,724 10,717
Gross profit 1,045 892 2,087 1,657 3,706
Direct Operating Expenses 458 358 923 655 1,482
Selling, General & Administration (SG&A) 276 197 537 346 846
Profit before depreciation, amortisation and impairment losses, etc. (EBITDA) 311 337 627 656 1,378
EBITDA margin 9.2% 9.6% 9.1% 10.3% 9.6%
Profit after depreciation and impairment losses, before amortisations (EBITA) 158 262 336 466 944
EBITA margin 4.7% 7.5% 4.9% 7.3% 6.5%
Profit before financial items (EBIT) 115 234 250 417 814
EBIT margin 3.4% 6.7% 3.6% 6.5% 5.6%
Invested capital 10,508 5,971 10,508 5,971 9,858
Gross capital expenditure, excl. acquisitions and divestments (CAPEX) 223 286 351 320 657
Operational and financial metrics
EBIT conversion (EBIT/gross profit - %) 11.0 26.2 12.0 25.2 22.0
Managed by Maersk revenue
1
535 608 1,103 1,154 2,491
Fulfilled by Maersk revenue
1
1,295 1,143 2,675 1,954 4,916
Transported by Maersk revenue
1
1,556 1,751 3,079 3,237 7,016
Supply chain management volumes (cbm in ’000) 25,654 29,602 47,393 56,092 110,264
Intermodal volumes (FFE in ’000) 991 1,209 1,972 2,365 4,526
Air freight volumes (tonne in ’000) 72 53 128 84 211
1 The 2022 by Maersk revenue figures have been restated in order to reflect changes within the Logistics & Services model definition.
Organic/inorganic USD million
Q2-22 Organic Inorganic Q2-23
Revenue 3,502 -676 560 3,386
Growth -19% 16%
EBITA 262 -125 21 158
Management review I Segments I Logistics & Services
11
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 4 AUGUST 2023
revenue growth from the consolidation of the acquisitions of
Senator International and Grindrod Logistics.
Gross profit increased by USD 153m to USD 1.0bn (USD 892m)
with increases in all by Maersk service models, led by Fulfilled
by Maersk as a result of the integration of LF Logistics and Pilot.
EBITDA was USD 311m (USD 337m) and the EBITDA margin
9.2% (9.6%).
EBIT was USD 115m (USD 234m) and the EBIT margin 3.4% (6.7%).
In Q2 2023 profitability was impacted by lower demand from
key freight markets, lower rates and an increased footprint,
including higher amortisation from acquisitions and a contin-
ued investment in technology solutions for customers com-
pared to Q2 2022.
Key developments in 2023
In Fulfilled by Maersk, 782k sqm or 23% more capacity was
added organically versus Q2 2022. Total organic capacity was
4.2m sqm across 262 warehouses. The integration of LF Logistics
contributed inorganically with 3.3m sqm (adding 147k sqm in
Q2 2023) across 184 warehouses. Total capacity was 7.5m sqm
across 446 warehouses.
In Transported by Maersk, the Less than Container Load (LCL)
value proposition continues to be strengthened and more than
50 new lanes were added in Q2 2023, building a total LCL net-
work of over 500 own direct consolidation lanes versus 300 in
Q2 2022.
Financial review H1 2023
Revenue of USD 6.9bn (USD 6.4bn) was driven by Fulfilled by
Maersk services where revenue increased to USD 2.7bn (USD
2.0bn) as result of the integration of LF Logistics and Pilot.
Managed by Maersk revenue decreased by 4% to USD 1.1bn
driven by the decrease of lead logistics supply chain manage-
ment volumes of 16% to 47,393 kcbm (56,092 kcbm). Trans-
ported by Maersk decreased to USD 3.1bn (USD 3.3bn), driven
by lower Air freight rates as well lower Intermodal volumes by
18% to 1,972k FFE (2,365k FFE).
EBITDA decreased to USD 627m (USD 656m), and EBIT decreased
to USD 250m (USD 417m), impacted by the increased cost base
from the integrations of the acquisitions of Senator International,
LF Logistics, Pilot, Martin Bencher and Grindrod Logistics and
continued technology investments.
Terminals
Volumes remained significantly below those of 2022, particularly
in North America, where the ports of Los Angeles and Long Beach
reported a combined 18% reduction year-on-year in Q2 2023, and
New York/New Jersey reported similar reductions. As Terminals
volume decreased by 6.5% (decrease of 3.4% like-for-like, adjusted
for exits) compared to Q2 2022, utilisation declined by 7.2 per-
centage points to 72%. Sequentially, an improvement of 8.4%
was noted in Q2 2023 compared to Q1 2023.
Terminals highlights USD million
Q2
2023
Q2
2022
6M
2023
6M
2022
12M
2022
Revenue 950 1,124 1,826 2,255 4,371
Concession fees (excl. capitalised lease expenses) 78 97 143 187 362
Labour costs (blue collar) 284 315 531 621 1,270
Other operational costs 127 176 274 324 638
Selling, General & Administration (SG&A) and other costs, etc. 130 136 256 267 566
Total operating costs 619 724 1,204 1,399 2,836
Profit before depreciation, amortisation and impairment losses, etc. (EBITDA) 331 400 622 856 1,535
EBITDA margin 34.8% 35.6% 34.1% 38.0% 35.1%
Profit/loss before financial items (EBIT) 269 316 476 243 832
EBIT margin 28.3% 28.1% 26.1% 10.8% 19.0%
Invested capital 7,803 7,618 7,803 7,618 7,593
Gross capital expenditure, excl. acquisitions and divestments (CAPEX) 97 105 208 185 516
Operational and financial metrics
Volumes – financially consolidated (moves in ’000) 3,052 3,264 5,868 6,377 12,752
Ocean segment 1,046 1,176 2,030 2,274 4,558
External customers 2,006 2,088 3,838 4,103 8,194
Revenue per move – financially consolidated (USD) 310 341 309 351 341
Cost per move – financially consolidated (USD) 245 265 248 262 263
Result from joint ventures and associated companies (USDm) 74 79 124 -313 -46
Management review I Segments I Logistics & Services I Terminals
12
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 4 AUGUST 2023
Revenue for Q2 was 15% lower than in Q2 2022, and as expected
driven by a combination of lower demand and the normalisation
of global port congestion. Nonetheless, strong focus on cost
control enabled Terminals to reduce costs-per-move by 3.1%
at fixed exchange rates and terminal mix, resulting in stable
margins.
Financial and operational performance
Revenue decreased by 15% to USD 950m (USD 1.1bn), influ-
enced by the normalisation of storage revenue and 6.5% lower
volume, (decreasing by 3.4% like-for-like) due to lower demand
and less congestion in North America. Utilisation decreased to
72% (79%). Revenue per move was down 9.3% to USD 310 (USD
341), driven by terminal mix and lower storage revenue, with
underlying tariffs increasing in line with local inflation. Cost
per move decreased by 7.6% to USD 245 (USD 265) due to an
ability to take out costs to match the lower activity levels and
cost saving initiatives.
At fixed foreign exchange rates and terminal mix, revenue per
move decreased by 6.4% and cost per move decreased by 3.1%.
EBITDA of USD 331m (USD 400m) was driven by the normalisa-
tion of storage revenue and the lower volumes, partly offset by
lower costs. Accordingly EBITDA margin was protected, dropping
less than one percentage point to 35%.
EBIT of USD 269m (USD 316m) was driven by the lower storage
revenue and lower volume.
ROIC (LTM average) increased to 11.4% from 7.4%, and adjusted
for the impairment of Global Port Investments, ROIC was 13.1%
for 2022.
CAPEX decreased slightly to USD 97m (USD 105m) due to
reduced growth and replacement investments in Europe and
Latin America, partly offset by higher investments in modern-
ising the North American portfolio.
Regional volume
In Europe, volume increased by 4.7% due to strong demand in
Poti, Georgia, partly offset by a weaker market in North Europe
and Spain with overall utilisation being at par.
In Latin America, volume increased by 1.6%, driven by higher
volume in Buenaventura, Colombia, and Callao, Peru, offset
by the impact of an exit in Itajai, Brazil. However, utilisation
decreased slightly to 73% (74%).
In Asia and Middle East, volume decreased by 11%, driven by
ongoing construction in Mumbai, India, where one berth is
unavailable, also reducing utilisation to 73% (81%).
In North America, volume decreased by 12% due to significantly
weaker demand on the East and West Coasts, reducing utilisa-
tion to 73% (91%).
In Africa, volume decreased by 22% due to the divestment of
Luanda, Angola. Adjusted for the exit, volume increased by 1.4%.
Utilisation reduced to 56% (64%) due to an increase in capacity
in selected terminals.
Results from joint ventures and associated companies
The share of profits in joint ventures and associated compa-
nies decreased to USD 74m (USD 79m), due to the exits from
Wilhelmshaven, Germany, and Global Ports Investments (GPI),
with underlying results unchanged.
Key developments in 2023
Progress with modernising the portfolio continues with APM
Terminals Poti completing the reconstruction of Poti Port’s
150-year-old 1,850-meter-long main breakwater. The com-
pletion of the breakwater reconstruction is part of a multi-
million US dollar investment by Terminals in infrastructure in
Poti, Georgia.
The non-container capacity of the existing portfolio will be
increased with APM Terminals Pipavav, India, investing around
USD 90m in a new liquid berth. The port’s current capacity to
manage two million metric tonnes of liquid bulk will increase
significantly to 5.2 million metric tonnes. The investment sup-
ports the port’s objective of contributing to the growth of
India’s logistics infrastructure, bolstering connectivity to north-
western hinterlands, and better serving customers with end-to-
end solutions.
Looking forward, Terminals have confirmed its intention to
invest around USD 1.0bn in Brazilian Terminals by 2026 during
its participation in the Dutch trade mission to Brazil. The devel-
opment of a new terminal in Suape, and the expansion of the
existing terminal in Santos is included.
Regional volume
1
Moves (’000)
Q2 2023 Q2 2022 Growth %
North America 783 887 -12
Latin America 598 588 1.6
Europe and the Baltics 696 664 4.7
Africa 194 250 -22
Asia and Middle East 781 875 -11
Total 3,052 3,264 -6.5
1 Financially consolidated.
Terminals performance Q2 2019-2023 USD million
Q2 Q2 Q2 Q2 Q2
2023 2022 2021 2020 2019
Revenue 950 1,124 969 723 806
Total operating
costs 619 724 599 537 622
EBIT 269 316 302 144 122
EBITDA margin 34.8% 35.6% 38.2% 25.7% 22.8%
Operational and
financial metrics
ROIC 11.4% 7.4% 8.7% 5.7% 5.1%
Volumes 3,052 3,264 3,217 2,599 3,013
Revenue per move 310 341 301 278 266
Cost per move 245 265 234 251 242
Management review I Segments I Terminals
13
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 4 AUGUST 2023
Financial review H1 2023
Revenue of USD 1.8bn (USD 2.3bn) was driven by an 8.0% decrease
in volume (decrease of 4.6% like-for-like) and significantly lower
storage revenue. Capacity utilisation decreased to 69% (78%).
Revenue per move decreased to USD 309 (USD 351), driven by
lower storage revenue and negative rate of exchange impacts.
Cost per move decreased to USD 248 (USD 262), due to an ability
do take out cost to match the lower activity level, cost saving
initiatives and a positive terminal mix impact.
EBITDA of USD 622m (USD 856m) reflected the lower revenue,
while EBIT improved to USD 476m (USD 243m) due to the
impairment of GPI in 2022.
Terminals performance H1 2019-2023 USD million
H1 H1 H1 H1 H1
2023 2022 2021 2020 2019
Revenue 1,826 2,255 1,884 1,463 1,643
Total operating
costs 1,204 1,399 1,191 1,065 1,246
EBIT 476 243 541 306 276
EBITDA margin 34.1% 38.0% 36.8% 27.2% 24.1%
Operational and
financial metrics
ROIC 11.4% 7.4% 8.7% 5.7% 5.1%
Volumes 5,868 6,377 6,287 5,384 5,845
Revenue per move 309 351 299 272 272
Cost per move 248 262 235 242 242
Towage & Maritime Services
Revenue was USD 504m (USD 579m) with an EBITDA of USD 59m
(USD 81m). EBIT increased by USD 55m to USD 71m (USD 16m)
stemming from improved performance in Höegh Autoliners AS.
Towage
Financial and operational performance
Revenue increased to USD 206m (USD 198m), and adjusted for
foreign exchange rate effects, the increase was 7% or USD 13m.
Harbour Towage revenue increased by USD 6m driven by tariff
increase and favourable cargo mix with tug job activity on par.
Terminal towage revenue was on par.
EBITDA increased to USD 61m (USD 58m), due to increased rev-
enue partly offset by increased fuel and other operating costs.
EBIT increased to USD 35m (USD 34m) driven by the higher EBITDA
slightly offset by higher depreciations and lower result from
joint ventures and associated companies.
The share of profit in joint ventures and associated companies
was USD 5m (USD 6m).
Maritime Services
The divestment of Maersk Supply Service was completed in
May 2023 with a net gain on sale of USD 15m.
For Maersk Container Industry, revenue decreased by USD
19m to USD 115m (USD 134m), driven by lower market demand.
EBITDA increased to USD 8m (USD 7m) as lower revenue was
offset by lower costs. EBIT marginally decreased to USD 5m
(USD 6m) due to reversal of depreciations in 2022 when it was
classified as assets held for sale.
EBIT in Other Maritime Services includes a positive USD 20m
(negative USD 40m) from Höegh Autoliners AS, classified as an
associate. During the quarter, A.P. Moller - Maersk completed
the share divestment of The Metals Company.
Financial review H1 2023
Revenue was on par at USD 1.1bn (USD 1.1bn), EBITDA was USD
142m (USD 160m) and EBIT was USD 156m (USD 85m) as a result
of improved performance in Höegh Autoliners AS.
Management review I Segments I Terminals I Towage & Maritime Services
14
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 4 AUGUST 2023
Financial results reflect market normalisation
Revenue decreased by USD 13.7bn to USD 27.2bn (USD 40.9bn)
in H1 2023, with a decrease of USD 14.4bn and USD 429m in
Ocean and Terminals, respectively, while Logistics & Services
reported an increase of USD 476m.
Revenue in Ocean reflects a weaker growth environment with
inventory corrections seen in Western economies over the past
two quarters with lower volumes and freight rates. Revenue
decreased as well in Terminals due to lower volumes and sig-
nificantly lower storage revenue, particularly in North America,
where as revenue increased in Logistics & Services, driven by
the integration of LF Logistics and Pilot.
EBITDA decreased to USD 6.9bn (USD 19.4bn), with a decrease in
Ocean of USD 12.2bn due to lower revenue, a decrease in Logistics
& Services of USD 29m and in Terminals of USD 234m.
Ocean
(H1 2022: 17.8bn)
Logistics & Services
(H1 2022: 656m)
Terminals
(H1 2022: 856m)
5.6bn 627m 622m
EBIT decreased by USD 12.3bn to USD 3.9bn (USD 16.3bn),
impacted by the declining EBITDA. The EBIT margin decreased
to 14.5% (39.7%).
Ocean
(H1 2022: 15.6bn)
Logistics & Services
(H1 2022: 417m)
Terminals
(H1 2022: 243m)
3.2bn 250m 476m
Review H1 2023
Financial items, net, was USD 174m (loss of USD 497m), as the
increase in interest income and derivative gains on dividends and
share buy-back hedges were only partly offset by interest expenses.
Tax decreased to USD 297m (USD 335m), primarily due to lower
profit before tax.
The underlying profit of USD 3.9bn (USD 16.0bn) was adjusted for
net gains of USD 303m, driven primarily by vessel and container
sales in Ocean and the impairment and restructuring charges for
the A.P. Moller - Maersk brands of USD 378m of the previously
communicated USD 450m with the process ongoing into H2 2023.
Cash flow from operating activities of USD 8.1bn (USD 16.8bn),
was driven by EBITDA of USD 6.9bn and improved net working
capital to USD 1.4bn due to lower trade receivables, translating
into a strong cash conversion of 118% (87%).
Gross capital expenditure (CAPEX) was USD 1.6bn (USD 2.4bn),
driven by lower container investments in Ocean.
Free cash flow decreased to USD 5.8bn (USD 12.9bn) negatively
impacted by lower cash flow from operating activities and
increased lease payments, partly offset by decreased CAPEX
and higher financial income.
The dividend of DKK 4,300 per A.P. Møller - Mærsk A/S share of
nominally DKK 1,000 (USD 10.9bn), declared at the Annual General
Meeting on 28 March 2023, was paid on 31 March 2023. With-
holding tax of USD 1.5bn was paid in Q2 2023.
Total equity decreased to USD 56.4bn (USD 65.0bn on 31 Decem-
ber 2022), due to higher dividend payments and share buy-backs
partly offset by lower net profit of USD 3.8bn, resulting in an
equity ratio of 67.6% (69.4% at year-end 2022).
Multi-year comparison of financials USD million
H1 H1 H1 H1 H1
Income statement 2023 2022 2021 2020 2019
Revenue 27,195 40,942 26,669 18,568 19,167
Ocean 18,576 32,982 20,550 13,800 14,211
Logistics & Services 6,857 6,381 4,213 3,011 3,100
Terminals 1,826 2,255 1,884 1,463 1,643
Profit before depreciation, amortisation and impairment losses, etc. (EBITDA) 6,874 19,411 9,103 3,218 2,593
Profit before financial items (EBIT) 3,933 16,261 7,181 1,303 646
Profit for the period 3,810 15,429 6,463 652 -503
Cash flow statement
Cash flow from operating activities 8,092 16,832 7,570 3,083 2,652
Gross capital expenditure, excl. acquisitions and divestments (CAPEX) 1,576 2,362 781 672 1,223
Free cash flow 5,805 12,858 5,602 1,496 594
Financial ratios
Revenue growth -33.6% 53.5% 43.6% -3.1% 1.6%
EBITDA margin 25.3% 47.4% 34.1% 17.3% 13.5%
EBIT margin 14.5% 39.7% 26.9% 7.0% 3.4%
Management review I Review H1 2023
15
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 4 AUGUST 2023
Financials
Condensed income statement
Note Q2
2023
Q2
2022
6M
2023
6M
2022
12M
2022
1 Revenue 12,988 21,650 27,195 40,942 81,529
1 Profit before depreciation, amortisation and impairment losses, etc.
(EBITDA) 2,905 10,327 6,874 19,411 36,813
Depreciation, amortisation and impairment losses, net 1,571 1,418 3,451 2,925 6,186
4 Gain on sale of non-current assets, etc., net 163 37 303 64 101
Share of profit/loss in joint ventures and associated companies 110 42 207 -289 132
1 Profit before financial items (EBIT) 1,607 8,988 3,933 16,261 30,860
Financial items, net -16 -203 174 -497 -629
Profit before tax 1,591 8,785 4,107 15,764 30,231
Tax 104 164 297 335 910
Profit for the period 1,487 8,621 3,810 15,429 29,321
Of which:
Non-controlling interests 34 28 73 60 123
A.P. Møller - MærskA/S’ share 1,453 8,593 3,737 15,369 29,198
Earnings per share, USD 85 466 217 830 1,600
Diluted earnings per share, USD 85 464 216 827 1,595
Condensed statement of comprehensive income
Q2
2023
Q2
2022
6M
2023
6M
2022
12M
2022
Profit for the period 1,487 8,621 3,810 15,429 29,321
Translation from functional currency to presentation currency -115 -427 -59 -464 -551
Reclassified to income statement, gain on sale of non-current assets,
etc., net 40 9 40 9 53
Cash flow hedges -20 -41 -22 12 115
Tax on other comprehensive income -5 1 -1 -9 -10
Share of other comprehensive income of joint ventures and associated
companies, net of tax 3 - 2 -1 6
Total items that have been ormay be reclassified subsequently to the
income statement -97 -458 -40 -453 -387
Other equity investments -1 31 2 81 54
Actuarial gains/losses on defined benefit plans, etc. 1 - 1 - 36
Tax on other comprehensive income - - - - 30
Total items that will not be reclassified to the income statement - 31 3 81 120
Other comprehensive income, net of tax -97 -427 -37 -372 -267
Total comprehensive income for the period 1,390 8,194 3,773 15,057 29,054
Of which:
Non-controlling interests 30 13 71 47 92
A.P. Møller - MærskA/S’ share 1,360 8,181 3,702 15,010 28,962
Financials I Interim consolidated financial statements Q2 2023
AMOUNTS IN USD MILLION
16
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 4 AUGUST 2023
Condensed balance sheet at 30 June
30 June
2023
30 June
2022
31 December
2022
Intangible assets 10,268 7,844 10,785
Property, plant and equipment 27,729 27,667 28,194
Right-of-use assets 10,258 10,723 10,967
Financial non-current assets, etc. 3,038 2,663 3,272
Deferred tax 410 384 399
Total non-current assets 51,703 49,281 53,617
Inventories 1,483 2,202 1,604
2 Receivables, etc. 19,577 18,930 27,391
Securities 248 - 942
Cash and bank balances 10,423 9,730 10,057
Assets held for sale 66 283 69
Total current assets 31,797 31,145 40,063
Total assets 83,500 80,426 93,680
30 June
2023
30 June
2022
31 December
2022
3 Equity attributable to A.P. Møller - MærskA/S 55,332 51,517 63,991
Non-controlling interests 1,095 1,069 1,041
Total equity 56,427 52,586 65,032
Lease liabilities, non-current 8,103 8,354 8,582
Borrowings, non-current 3,681 3,932 3,774
Other non-current liabilities 2,838 2,552 2,971
Total non-current liabilities 14,622 14,838 15,327
Lease liabilities, current 2,865 2,982 3,032
Borrowings, current 166 244 255
Other current liabilities 9,412 9,644 10,025
Liabilities associated with assets held for sale 8 132 9
Total current liabilities 12,451 13,002 13,321
Total liabilities 27,073 27,840 28,648
Total equity and liabilities 83,500 80,426 93,680
Financials I Interim consolidated financial statements Q2 2023
AMOUNTS IN USD MILLION
17
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 4 AUGUST 2023
Condensed cash flow statement
Note Q2
2023
Q2
2022
6M
2023
6M
2022
12M
2022
Profit before financial items 1,607 8,988 3,933 16,261 30,860
Non-cash items, etc. 1,240 1,113 3,166 3,228 6,225
Change in working capital 145 -1,210 1,365 -2,279 -1,808
Cash flow from operating activities before tax 2,992 8,891 8,464 17,210 35,277
Taxes paid -234 -280 -372 -378 -801
Cash flow from operating activities 2,758 8,611 8,092 16,832 34,476
Purchase of intangible assets and property, plant and equipment (CAPEX) -738 -1,008 -1,576 -2,362 -4,163
Sale of intangible assets and property, plant and equipment 306 104 515 147 303
4 Acquisition of subsidiaries and activities -12 -1,535 -138 -1,536 -4,774
4 Sale of subsidiaries and activities 697 3 720 20 2
Acquisition of joint ventures and associated companies - - -1 - -46
Sale of joint ventures and associated companies 76 -19 74 -19 219
Dividends received 41 82 73 102 327
Sale of other equity investments 12 - 22 20 31
Financial investments, etc., net -1,013 -5,533 6,761 -4,427 -13,518
Cash flow from investing activities -631 -7,906 6,450 -8,055 -21,619
Repayments of/proceeds from borrowings, net -162 -631 -262 -647 -717
Repayments of lease liabilities -822 -762 -1,647 -1,408 -3,080
Financial payments, net 180 -59 631 -211 -238
Financial expenses paid on lease liabilities -144 -124 -283 -242 -518
Purchase of treasury shares -868 -564 -1,586 -1,195 -2,738
Dividends distributed -1,503 -902 -10,876 -6,847 -6,847
Dividends distributed to non-controlling interests -21 -40 -45 -43 -78
Other equity transactions 6 36 8 27 81
Cash flow from financing activities -3,334 -3,046 -14,060 -10,566 -14,135
Net cash flow for the period -1,207 -2,341 482 -1,789 -1,278
Cash and cash equivalents, beginning of period 11,643 12,084 10,038 11,565 11,565
Currency translation effect on cash and bank balances -31 -55 -115 -88 -249
Cash and cash equivalents, end of period 10,405 9,688 10,405 9,688 10,038
Of which classified as assets held for sale - -6 - -6 -1
Cash and cash equivalents, end of period 10,405 9,682 10,405 9,682 10,037
Cash and cash equivalents
Cash and bank balances 10,423 9,730 10,423 9,730 10,057
Overdrafts 18 48 18 48 20
Cash and cash equivalents, end of period 10,405 9,682 10,405 9,682 10,037
Cash and bank balances include USD 1.2 bn (USD 1.4 bn at 31 December 2022) relating to cash and bank balances in countries with exchange control
or other restrictions. These funds are not readily available for general use by the parent company or other subsidiaries.
Financials I Interim consolidated financial statements Q2 2023
AMOUNTS IN USD MILLION
18
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 4 AUGUST 2023
Condensed statement of changes in equity
A.P. Møller - Mærsk A/S
Note Share
capital
Trans-
lation
reserve
Reserve
for other
equity
invest-
ments
Reserve
for
hedges
Retained
earnings
Total Non-
controlling
interests
Total
equity
Equity 1 January 2023 3,392 -1,232 212 -27 61,646 63,991 1,041 65,032
Other comprehensive income,
net of tax - 82 -33 -23 -61 -35 -2 -37
Profit for the period - - - - 3,737 3,737 73 3,810
Total comprehensive income
for the period - 82 -33 -23 3,676 3,702 71 3,773
Dividends to shareholders - - - - -10,824 -10,824 -47 -10,871
Value of share-based payment - - - - 10 10 - 10
Acquisition of non-controlling
interests
Sale of non-controlling interests - - - - - - 1 1
3 Purchase of treasury shares - - - - -1,538 -1,538 - -1,538
3 Sale of treasury shares - - - - 11 11 - 11
Capital increases and decreases -206
Transfer of gain/loss on disposal
of equity investments to retained
earnings - - 2 - -2 - - -
Transfer of cash flow hedge reserve
to non-current assets - - - -4 - -4 - -4
Total transactions with
shareholders -206 - 2 -4 -12,153 -12,361 -17 -12,378
Equity 30 June 2023 3,186 -1,150 181 -54 53,169 55,332 1,095 56,427
Equity 1 January 2022 3,513 -767 135 -160 41,787 44,508 1,080 45,588
Other comprehensive income,
net of tax - -440 81 1 -1 -359 -13 -372
Profit for the period - - - - 15,369 15,369 60 15,429
Total comprehensive income
for the period - -440 81 1 15,368 15,010 47 15,057
-
Dividends to shareholders - - - - -6,845 -6,845 -43 -6,888
Value of share-based payment - - - - 10 10 - 10
Sale of non-controlling interests - - - - - - -30 -30
3 Purchase of treasury shares - - - - -1,183 -1,183 - -1,183
3 Sale of treasury shares - - - - 17 17 - 17
3 Capital increases and decreases -121 - - - 121 - 15 15
Transfer of gain/loss on disposal
of equity investments to retained
earnings - - -14 - 14 - - -
Total transactions with
shareholders -121 - -14 - -7,866 -8,001 -58 -8,059
Equity 30 June 2022 3,392 -1,207 202 -159 49,289 51,517 1,069 52,586
Financials I Interim consolidated financial statements Q2 2023
AMOUNTS IN USD MILLION
19
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 4 AUGUST 2023
Note 1 Segment information
Ocean Logistics
& Services
Terminals Towage &
Maritime
Services
Unallo-
cated
items
Elimi-
nations
Consoli-
dated
total
Q2 2023
External revenue 8,396 3,422 710 434 26 - 12,988
Inter-segment revenue 307 -36 240 70 6 -587 -
Total revenue 8,703 3,386 950 504 32 -587 12,988
Profit before depreciation, amortisation
and impairment losses, etc. (EBITDA) 2,259 311 331 59 -54 -1 2,905
Profit before financial items (EBIT) 1,205 115 269 71 -57 4 1,607
Key metrics
Invested capital 29,064 10,508 7,803 2,201 -191 -42 49,343
Gross capital expenditures, excl.
acquisitions and divestments (CAPEX) 314 223 97 99 4 1 738
Ocean Logistics
& Services
Terminals Towage &
Maritime
Services
Unallo-
cated
items
Elimi-
nations
Consoli-
dated
total
Q2 2022
External revenue 16,757 3,554 847 467 25 - 21,650
Inter-segment revenue 655 -52 277 112 6 -998 -
Total revenue 17,412 3,502 1,124 579 31 -998 21,650
Profit before depreciation, amortisation
and impairment losses, etc. (EBITDA) 9,598 337 400 81 -87 -2 10,327
Profit before financial items (EBIT) 8,526 234 316 16 -106 2 8,988
Key metrics
Invested capital 33,422 5,971 7,618 2,629 -416 -29 49,195
Gross capital expenditures, excl.
acquisitions and divestments (CAPEX) 517 286 105 93 7 - 1,008
Financials I Interim consolidated financial statements Q2 2023
AMOUNTS IN USD MILLION
20
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 4 AUGUST 2023
Note 1 Segment information – continued
Ocean Logistics
& Services
Terminals Towage &
Maritime
Services
Unallo-
cated
items
Elimi-
nations
Consoli-
dated
total
6M 2023
External revenue 17,837 6,961 1,363 977 57 - 27,195
Inter-segment revenue 739 -104 463 129 19 -1,246 -
Total revenue 18,576 6,857 1,826 1,106 76 -1,246 27,195
Profit before depreciation, amortisation
and impairment losses, etc. (EBITDA) 5,611 627 622 142 -127 -1 6,874
Profit before financial items (EBIT) 3,174 250 476 156 -131 8 3,933
Key metrics
Invested capital 29,064 10,508 7,803 2,201 -191 -42 49,343
Gross capital expenditures, excl.
acquisitions and divestments (CAPEX) 852 351 208 163 9 -7 1,576
Ocean Logistics
& Services
Terminals Towage &
Maritime
Services
Unallo-
cated
items
Elimi-
nations
Consoli-
dated
total
6M 2022
External revenue 31,757 6,472 1,749 913 51 - 40,942
Inter-segment revenue 1,225 -91 506 221 13 -1,874 -
Total revenue 32,982 6,381 2,255 1,134 64 -1,874 40,942
Profit before depreciation, amortisation
and impairment losses, etc. (EBITDA) 17,812 656 856 160 -70 -3 19,411
Profit before financial items (EBIT) 15,598 417 243 85 -90 8 16,261
Key metrics
Invested capital 33,422 5,971 7,618 2,629 -416 -29 49,195
Gross capital expenditures, excl.
acquisitions and divestments (CAPEX) 1,673 320 185 174 14 -4 2,362
USD million Types of revenue Q2
2023
Q2
2022
6M
2023
6M
2022
12M
2022
Ocean Freight revenue 7,414 15,350 15,845 28,910 56,499
Other revenue, including hubs 1,289 2,062 2,731 4,072 7,800
Logistics & Services Managed by Maersk
1
535 608 1,103 1,154 2,491
Fulfilled by Maersk
1
1,295 1,143 2,675 1,954 4,916
Transported by Maersk
1
1,556 1,751 3,079 3,273 7,016
Terminals Terminal services 950 1,124 1,826 2,255 4,371
Towage & Maritime Services Towage services 206 198 411 390 774
Sale of containers and spare parts 115 134 224 275 499
Offshore supply services 16 96 111 178 390
Other shipping activities 72 71 145 137 282
Other services 95 80 215 154 348
Unallocated activities and eliminations -555 -967 -1,170 -1,810 -3,857
Total revenue 12,988 21,650 27,195 40,942 81,529
1 The 2022 by Maersk revenue figures have been restated in order to reflect changes within the Logistics & Services model definition.
Financials I Interim consolidated financial statements Q2 2023
AMOUNTS IN USD MILLION
21
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 4 AUGUST 2023
Note 3 Share capital
Development in the number of shares:
A shares of B shares of Nominal value
DKK 1,000 DKK 500 DKK 1,000 DKK 500 DKK million USD million
1 January 2022 10,468,107 216 8,907,718 166 19,376 3,513
Conversion 1 -2 3 -6 - -
Cancellations 133,779 - 535,076 - 669 121
30 June 2022 10,334,329 214 8,372,645 160 18,707 3,392
1 January 2023 10,334,329 214 8,372,645 160 18,707 3,392
Cancellations 227,390 - 910,056 - 1,137 206
30 June 2023 10,106,939 214 7,462,589 160 17,570 3,186
All shares are fully issued and paid up.
One A share of DKK 1,000 holds two votes. B shares have no voting rights.
At the Annual General Meeting of A.P. Møller - Mærsk A/S on 28 March 2023,
the shareholders decided on the cancellation of treasury shares whereby
the share capital would be decreased from nominally DKK 18,707,161,000
to nominally DKK 17,569,715,000. The cancellation was completed during
Q2 2023.
Development in the holding of treasury shares:
No. of shares of DKK 1,000 Nominal value DKK million % of share capital
Treasury shares 2023 2022 2023 2022 2023 2022
A shares
1 January 201,717 120,494 202 121 1.08% 0.62%
Additions 157,905 69,096 158 69 0.89% 0.37%
Cancellations 227,390 133,779 227 134 1.22% 0.69%
30 June 132,232 55,811 133 56 0.75% 0.30%
B shares
1 January 887,557 549,587 888 549 4.74% 2.84%
Additions 623,897 321,754 624 322 3.54% 1.71%
Cancellations 910,056 535,076 910 535 4.86% 2.76%
Disposals 15,987 19,427 16 19 0.09% 0.10%
30 June 585,411 316,838 586 317 3.33% 1.69%
The share buy-back programme is carried out with the purpose to adjust
the capital structure of the company. Shares which are not used for
hedging purposes for the long-term incentive programmes will be
proposed cancelled at the Annual General Meetings.
Disposals of treasury shares are related to the share option plan and
the restricted share unit plan.
From 1 January 2023 to 30 June 2023, A.P. Møller - Mærsk A/S bought
back as treasury shares 81,266 A shares, with a nominal value of DKK
81m, and 242,189 B shares, with a nominal value of DKK 242m from
78m, from A.P. Møller og Hustru Chastine Mc-Kinney Møllers Familie fond,
which are considered related parties.
The dividend of DKK 4,300 per share of DKK 1,000 – a total of DKK 74.4bn
is equivalent to USD 10.9bn, excluding treasury shares. Of this, USD 9.4bn
was paid to shareholders on 31 March 2023 and the withholding tax of
USD 1.5bn was paid during Q2 2023. Payment of dividends to share-
holders does not trigger taxes for A.P. Moller - Maersk.
Receivables, etc. amount to USD 19.6bn (USD 27.4bn at 31 December 2022)
and consist primarily of term deposits with a maturity of more than three
months amounting to USD 11.5bn (USD 17.6bn at 31 December 2022).
Note 2 Term deposits
Financials I Interim consolidated financial statements Q2 2023
AMOUNTS IN USD MILLION
22
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 4 AUGUST 2023
Acquisitions during 2023
Grindrod Intermodal Group (Logistics & Services)
On 2 January 2023, the Group completed the acquisition of Grindrod
Logistics. The Group partnered with Grindrod Intermodal Group to merge
the logistics activities of Grindrod Intermodal business and the ocean
activities of the Ocean Africa Container Lines (OACL) with the current
Maersk Logistics & Services products in South Africa. The Grindrod Inter-
modal Group is a well-known and trusted partner in South Africa that
offers a range of logistics and services offerings. The Group has a con-
trolling interest of 51%. The purchase price is USD 37m and resulted in
a provisional goodwill recognised of USD 20m.
Martin Bencher Group (Logistics & Services)
On 2 January 2023, the Group acquired 100% of the shares in Martin
Bencher Group, a Denmark-based project logistics company with pre-
mium competencies within non-containerised project logistics. The
acquisition of Martin Bencher Group will add to the existing project
logistics services already available at Maersk, with a specialised service
offering the combination of solution design, special cargo transpor-
tation, and project management services. It will build on existing infra-
structures and know-how across the existing Project Logistics vertical
in Sales & Marketing, Ocean, and Logistics & Services Special Project
Logistics (SPL). The purchase price is USD 54m and resulted in a provi-
sional goodwill recognised of USD 11m.
Sales during 2023
Maersk Supply Service
On 15 May 2023, the sale of Maersk Supply Service to A.P. Møller Holding
was completed for cash proceeds net of cash sold of USD 685m and
resulted in a net gain of USD 15m, which includes the reclassification
of the translation reserve loss of USD 40m from equity to the income
statement. The gain is classified as gain on sale of non-current assets
within the condensed income statement.
The net profit until the divestment is included within the Towage &
Maritime Services segment as per Note 1 Segment information.
Acquisitions during 2022
LF Logistics Holdings Limited (Logistics & Services)
On 31 August 2022, the Group acquired 100% of the shares in LF Logistics
Holdings Limited, a leading omnichannel fulfilment contract logistics
company in Asia Pacific. During Q2 2023, there were no changes to the
provisional purchase price allocation prepared at closing date.
Pilot Freight Services (Logistics & Services)
On 2 May 2022, the Group acquired 100% of the shares in Pilot Freight
Services, a US-based first, middle and last mile cross-border solutions
provider. In Q2 2023, the provisional purchase price allocation was final-
ised, resulting in a reduction of the calculated goodwill by USD 30m. The
changes were primarily related to the valuation of customer relationships
and deferred tax liabilities.
Senator International (Logistics & Services)
On 2 June 2022, the Group acquired 100% of the shares in Senator Inter-
national, a well renowned German air-based freight carrier company. In
Q2 2023, the provisional purchase price allocation was finalised, resulting
in an increase of the calculated goodwill by USD 5m. The changes were
primarily related to the valuation of tax payables.
The accounting for all of the current period business combinations and
the LF Logistics Holdings Limited acquisition are considered provisional as
at 30 June 2023 as the valuation of intangible assets is not yet finalised.
Note 4 Acquisition/sale of subsidiaries
The total commitment across segments of USD 5.5bn (USD 5.0bn
at 31 December 2022) is related to investments for new methanol
container vessels, tugs, aircraft and commitments towards terminal
concession grantors.
Note 5 Commitments
The interim consolidated financial statements have been prepared in
accordance with IAS 34 Interim Financial Reporting as issued by the
International Accounting Standards Board (IASB) and adopted by the
EU and additional Danish disclosure requirements for interim financial
reporting of listed companies. The accounting policies, judgements and
significant estimates are consistent with those applied in the Annual
Report 2022, except for below.
Amendments to IAS 12 Income taxes
In May 2023, the IASB issued amendments to IAS 12 Income taxes,
which provides temporary relief from the requirement to recognise
and disclose deferred taxes arising from enacted or substantively
enacted tax law that implements the Pillar two model rules published
by the OECD, including tax law that implements qualified domestic mini-
mum top-up taxes. The amendments have yet to be adopted by the EU.
The company expects to apply this relief when approved by the EU.
Impairment of brands
On 27 January 2023, it was announced that the Group would move towards
a singular and unified brand by integrating the Maersk brands. Existing
brands were retired during Q1 2023, resulting in the recognition of im-
pairment losses of the full carrying amount of each respective retired
brand on the balance sheet. Total impairment losses related to the retire-
ment of brands in Q1 2023 recognised in the condensed income statement
is USD 299m of which USD 297m is within Ocean and USD 2m is within
Logistics & Services.
Note 6 Accounting policies, judgements and significant estimates
Financials I Interim consolidated financial statements Q2 2023
AMOUNTS IN USD MILLION
23
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 4 AUGUST 2023
Management’s statement
Executive Board
Board of Directors
Management review I Management’s statement
24
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 4 AUGUST 2023
2023 2022
Income statement Q2 Q1 Q4 Q3 Q2 Q1
Revenue 12,988 14,207 17,820 22,767 21,650 19,292
Profit before depreciation, amortisation and impairment losses, etc.
(EBITDA) 2,905 3,969 6,540 10,862 10,327 9,084
Depreciation, amortisation and impairment losses, net 1,571 1,880 1,612 1,649 1,418 1,507
Gain on sale of non-current assets, etc., net 163 140 33 4 37 27
Share of profit/loss in joint ventures and associated companies 110 97 161 260 42 -331
Profit before financial items (EBIT) 1,607 2,326 5,122 9,477 8,988 7,273
Financial items, net -16 190 171 -303 -203 -294
Profit before tax 1,591 2,516 5,293 9,174 8,785 6,979
Tax 104 193 312 263 164 171
Profit for the period 1,487 2,323 4,981 8,911 8,621 6,808
A.P. Møller - Mærsk A/S’ share 1,453 2,284 4,950 8,879 8,593 6,776
Underlying profit
1
1,346 2,561 4,863 8,818 8,553 7,469
Balance sheet
Total assets 83,500 85,490 93,680 89,058 80,426 73,031
Total equity 56,427 55,833 65,032 60,231 52,586 44,940
Invested capital 49,343 50,322 52,410 53,386 49,195 45,167
Net interest-bearing debt -7,090 -7,002 -12,632 -6,855 -3,356 -689
Cash flow statement
Cash flow from operating activities 2,758 5,334 8,200 9,444 8,611 8,221
Capital lease instalments – repayments of lease liabilities 822 825 861 811 762 646
Gross capital expenditure, excl. acquisitions and divestments (CAPEX) 738 838 895 906 1,008 1,354
Cash flow from financing activities -3,334 -10,726 -1,601 -1,968 -3,046 -7,520
Free cash flow 1,581 4,224 6,462 7,787 6,844 6,014
Financial ratios
Revenue growth -40.0% -26.4% -3.7% 37.1% 52.1% 55.1%
EBITDA margin 22.4% 27.9% 36.7% 47.7% 47.7% 47.1%
EBIT margin 12.4% 16.4% 28.7% 41.6% 41.5% 37.7%
Cash conversion 95% 134% 125% 87% 83% 90%
Return on invested capital after tax (ROIC) (last twelve months) 34.3% 49.1% 60.4% 66.6% 62.5% 53.6%
Equity ratio 67.6% 65.3% 69.4% 67.6% 65.4% 61.5%
Underlying ROIC
1
(last twelve months) 34.1% 49.0% 61.2% 68.1% 64.2% 55.4%
Underlying EBITDA
1
2,916 4,037 6,517 10,851 10,289 9,186
Underlying EBITDA margin
1
22.5% 28.4% 36.6% 47.7% 47.5% 47.6%
Underlying EBIT
1
1,469 2,563 5,002 9,381 8,924 7,937
Underlying EBIT margin
1
11.3% 18.0% 28.1% 41.2% 41.2% 41.1%
Stock market ratios
Earnings per share, USD 85 131 278 488 466 364
Diluted earnings per share, USD 85 131 277 487 464 363
Cash flow from operating activities per share, USD 163 306 461 519 467 442
Share price (B share), end of period, DKK 11,975 12,445 15,620 13,865 16,555 20,370
Share price (B share), end of period, USD 1,745 1,816 2,242 1,817 2,313 3,040
Total market capitalisation, end of period, USD 29,273 30,957 39,135 32,099 42,108 55,662
1 Underlying is computed as the relevant performance measure adjusted for the net gains/losses from the sale of non-current assets, etc. and net impairment
losses as well as transaction, restructuring and integration costs related to major transactions. The adjustments include A.P. Moller - Maersk’s share of mentioned
items in joint ventures and associated companies and, when applicable, the adjustments are net of tax.
Quarterly summary
Management review I Quarterly summary
AMOUNTS IN USD MILLION
25
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 4 AUGUST 2023
Technical terms, abbreviations and definitions of key figures and financial ratios.
Definition of terms
A
A.P. Moller - Maersk
A.P. Moller - Maersk is referred to
as the consolidated group of com-
panies and A.P. Møller - Mærsk A/S
as the parent company.
B
Backhaul
The direction of the trade route
with the lowest volumes, whereas
the opposite direction is referred
to as headhaul.
C
CAPEX
Cash payments for intangible assets
and property, plant and equipment,
excluding acquisi tions and divest-
ments.
Cash conversion
Cash flow from operating activities
to EBITDA ratio.
Cash flow from operating
activities per share
A.P. Moller - Maersk’s operating
cash flow from con tinuing oper-
ations divided by the number
of shares (of DKK 1,000 each),
excluding A.P. Moller - Maersk’s
holding of treasury shares.
Cost base
EBIT costs including VSA income
and hub income and adjustments
for restructuring costs, the result
from associated companies and
gains/losses.
E
EBIT
Earnings Before Interest and Taxes.
EBITA
Earnings Before Interest, Tax and
Amortisation.
EBITDA
Earnings Before Interest, Taxes,
Depreciation and Amortisation.
Equity ratio
Calculated as equity divided by
total assets.
F
FFE
Forty Foot container Equivalent unit.
Free cash flow (FCF)
Comprised of cash flow from
operating activities, purchase/sale
of intangible assets and property,
plant and equipment, dividends
received, repayments of lease
liabilities, financial payments and
financial expenses paid on lease
liabilities.
G
Gross profit
The sum of revenue, less variable
costs and loss on debtors.
H
Headhaul
The direction of the trade route
with the highest volumes, whereas
the return direction is referred to
as backhaul.
I
Invested capital
Segment operating assets less
segment operating liabilities,
including investments and deferred
taxes related to the operation.
K
kcbm
The freight volume of the shipment
for domestic and inter national
freight. Cubic metre (CBM) measure-
ment is calculated by multi plying
the width, height and length of the
shipment.
L
Loaded volumes
Loaded volumes refer to the
number of FFEs loaded on a ship-
ment which are loaded on first
load at vessel departure time,
excluding displaced FFEs.
Logistics & Services,
Top 200 organic growth
Logistics & Services’ organic revenue
increase from the top 200 Ocean
customers excluding freight for-
warders. The top 200 Ocean cus-
tomers are selected annually
based on Ocean volumes.
N
Net interest-bearing debt
(NIBD)
Equals interest-bearing debt,
including leasing liabilities, fair
value of deriva tives hedging the
underlying debt, less cash and
bank balances as well as other
interest- bearing assets.
O
Ocean, average operated fleet
capacity (TEU in ’000)
Average Ocean fleet capacity for
the period excluding idle vessels.
Ocean, loaded freight rate
(USD per FFE)
Average freight rate per FFE for
all the A.P. Moller - Maersk con-
tainers loaded in the period in
either Maersk Line or Hamburg
Süd vessels or third parties
(excluding intermodal). Hamburg
Süd is not excluding intermodal.
Ocean, unit cost, fixed bunker
(USD per FFE incl. VSA income)
Cost per FFE assuming a bunker
price at USD 550/tonne excluding
intermodal but including hubs and
time charter income. Hamburg Süd
is not excluding intermodal.
R
Return on invested capital
after tax (ROIC)
Profit/loss before financial items
for the year (EBIT) less tax on EBIT
divided by the average invested
capital, last twelve months.
Revenue per move
Includes terminal revenue, other
income, government grants and
excludes IFRIC12 construction
revenue.
S
Spot conversion rate
Spot conversion is spot volumes
divided by convertible shipment
volumes.
T
TEU
Twenty-foot container Equivalent
Unit.
Time charter
Hire of a vessel for a specified period.
Total market capitalisation
Total number of shares – excluding
A.P. Møller - Mærsk A/S’ holding of
treasury shares – multiplied by the
end-of-quarter price quoted by
Nasdaq Copenhagen.
U
Underlying EBITDA
Underlying EBITDA is earnings
before interest, taxes, depreciation
and amortisation adjusted for
restructuring and integration costs.
Underlying EBIT
Underlying EBIT is operating profit
before interest and taxes adjusted
for restructuring and integration
costs, net gains/losses from sale
of non-current – assets and net
impairment losses.
Underlying profit/loss
Underlying profit/loss is profit/
loss for the year from continuing
operations adjusted for net gains/
losses from sale of non-current
assets, etc., and net impairment
losses as well as transaction,
restructuring and integration costs
related to major transactions. The
adjustments are net of tax and
include A.P. Moller - Maersk’s share
of mentioned items in joint ven-
tures and associated companies.
Unit cost, fixed bunker
Unit cost, fixed bunker is calculated
using a fixed bunker price of USD
550 USD/tonne for all periods
presented.
V
VSA
Vessel Sharing Agreement is usually
reached between various partners
within a shipping con sortium who
agree to operate a liner service along
a specified route using a specified
number of vessels.
Management review I Definition of terms
26
A.P. MOLLER - MAERSK INTERIM REPORT Q2 | 4 AUGUST 2023