Maersk net profit significantly down in Q2 2023; amid lower costs, consumption of bunker fuel
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Integrated container logistics company A.P. Moller – Maersk recorded a sharp drop in net profit for the second quarter of 2023 (Q2 2023) due to gains from its Ocean business.
The company posted total net profit of USD 1.5 billion in Q2 2023 from its Ocean, Logistics & Services, and Gateway Terminals businesses, decreasing from net profit of USD 8.6 billion in Q2 2022.
Total revenue across its three business segments in Q2 2023 was USD 13 billion, decreasing from revenue of USD 21.7 billion in Q2 2022.
Specifically, its Ocean business segment experienced a revenue downturn to 8.7 USD billion in Q2 2023 from USD 17.4 billion in the year before, driven by a decrease in freight rates and loaded volumes.
“The Q2 result contributed to a strong first half of the year, where we responded to sharp changes in market conditions prompted by destocking and subdued growth environment following the pandemic fuelled years,” said Vincent Clerc, CEO of Maersk.
“Our decisive actions on cost containment together with our contract portfolio cushioned some of the effects of this market normalisation. Cost focus will continue to play a central role in dealing with a subdued market outlook that we expect to continue until end year. While we step this agenda further up, we are unwavering in our transformation and continue to invest in and deliver truly integrated logistics solutions to our customers and amplify their supply chain resilience for the uncertain times ahead.”
Maersk’s bunker costs in Q2 2023 dropped to 1.440 billion from USD 2.193 billion in Q2 2022; its average bunker price in Q2 2023 was USD 592 per metric tonne (pmt), compared to USD 827 pmt during the similar period last year.
The company consumed 2,432,000 metric tonnes (mt) of marine fuel in Q2 2023, 8.3% lower than 2,651,000 mt of bunker fuel during Q2 2022. Bunker efficiency decreased by y 2.9% to 40.7 g/TEU*NM (41.9 g/TEU*NM).
Note: The full Q2 2023 Report of A.P. Moller – Maersk can be obtained from its website here.
Photo credit: A.P. Møller – Mærsk
Published: 7 August, 2023
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