Maersk lifts guidance after doubling Q2 profits

Shipping giant Maersk raised its full-year earnings guidance Thursday as it reported a doubling of profits in the second quarter, driven by strong demand in Asia in particular.

From April to June, net profit was US$1.3 billion, up from US$614 million a year earlier, the company said.

Maersk said its profits rose even as the ongoing Middle East war throttled tanker and cargo traffic through the Strait of Hormuz, a key transit route for oil, gas and other crucial industrial products.

“Our global team’s ability to capture opportunities in these difficult markets has enabled us to deliver significant volume and earnings growth across our businesses,” chief executive Vincent Clerc said in a statement.

The company warned that “the situation in the Middle East remains volatile, continuing to impact logistics networks and customer supply chains”, pushing up operating costs.

But “higher freight rates, combined with lower depreciation due to the change in the useful lives of vessels”, helped boost profits.

For the full year, Maersk now expects EBITDA operating profit, which excludes exceptional items, of US$10.5 billion to US$12.5 billion, up from the US$8-10 billion dollars previously forecast.

Shares in Maersk were up around 4.3% in early trading on the Copenhagen stock exchange.