AMKBY - A.P. Møller - Mærsk A/S (AMKBY) Q4 2023 Earnings Call Transcript
2024-02-08 19:22:05 ET
A.P. Møller - Mærsk A/S (AMKBY)
Q4 2023 Results Conference Call
February 8, 2024 05:00 AM ET
Company Participants
Vincent Clerc - Chief Executive Officer
Patrick Jany - Chief Financial Officer
Conference Call Participants
Lars Heindorff - Nordea
Alexia Dogani - Barclays
Cristian Nedelcu - UBS
Sam Bland - JPMorgan
Robert Joynson - BNB Paribas
Omar Nokta - Jefferies
Dan Togo Jensen - Carnegie
Patrick Creuset - Goldman Sachs
Sathish Sivakumar - Citi
Cedar Ekblom - Morgan Stanley
Ulrik Bak - SEB
Muneeba Kayani - Bank of America
Presentation
Vincent Clerc
Welcome, everyone, and thank you for joining us on this earnings call today as we present the fourth quarter and annual results for 2023. My name is Vincent Clerc. I'm CEO of A.P. Møller - Maersk. And with me in the room today is our CFO, Patrick Jany.
On Slide 2, you will see our usual disclaimer on forward-looking statements. Please familiarize yourself with this at your convenience. For now, let's move straight to the next slide.
Despite a continuing difficult environment, 2023 was a solid year, which -- in which we delivered on our guidance and have systematically sharpened our competitiveness in the course of the year. We closed the year with a total annual revenue of USD 51.1 billion, an underlying EBITDA of $9.8 billion and $4 billion, respectively, of EBIT. It generated a net profit of $3.9 billion.
Not only have our businesses delivered, but we have also emerged from the pandemic fuel boom with a more balanced and attractive business portfolio with greater contributions from Logistics and Terminals than we had going into the COVID. In parallel, our comprehensive focus on cost and organizational efficiencies contributed to our solid bottom line performance in this transition year. As a result, we are now well positioned going into 2024 and the uncertainties that lie ahead.
2023 was also another big year of cash returns to shareholders. Next, the largest dividend in our company history that returned $10.9 billion to shareholders. We also executed one of the largest share buyback that returned $3.1 billion. Overall, we generated total shareholder return of 6%.
In December, we confronted -- we were confronted with the outbreak of the Red Sea conflict, a situation we have responded to decisively. Let me begin by saying that we are horrified by the escalation of these unfortunate conflicts. Our number one priority is ensuring the safety of our seafarers and the safety of our customers' cargo. That is and remains and will always be our bottom line.
Following attacks on commercial vessels in the region, including our own, we have diverted all vessels due to transit in the Red Sea and the Gulf of Aden, south around the Cape of Good Hope for the time being and until further notice. The diversions have minimal impact on the fourth quarter given that they began late in the final 2 weeks of 2023. We reflect the expected impact of this disruption though, in our 2024 guidance to which I will speak later.
If we go into 2024 with a significant supply -- we go into 2024 with a significant supply side challenge in shipping. We spoke about it in November '23, and that remains unchanged. The Red Sea disruption is absorbing some of the overcapacity temporarily. However, the structural imbalance will catch up during 2024 and exacerbate over time, irrespective of whether the situation in the Red Sea endures or resolves itself....
A.P. Møller - Mærsk A/S (AMKBY) Q4 2023 Earnings Call Transcript