AMKBF - Maersk Q4 Results And Prospects Confirm Our Earlier Sell Call
2024-04-26 17:19:27 ET
Summary
- AMKBF's Q4 financial results showed a negative free cash flow of $1.71 billion.
- The dividend evaporated and will most likely be suspended this year.
- AMKBF is working towards a more balanced portfolio of business lines, however the effect of a poor container freight market will weigh heavily on this year's results.
- Large addition to the world's containership fleet takes several years to absorb, and we are only at the beginning of that process.
Investment Thesis
On the 11th of May last year we turned bearish on A.P. Møller - Mærsk A/S (AMKBF ) ( AMKBY ) on the back of unfavorable supply and demand dynamics, despite its lucrative 35% dividend yield on a TTM basis....
Maersk Q4 Results And Prospects Confirm Our Earlier Sell Call