A.P. Moller - Maersk AS (AMKBY) Q4 2024 Earnings Call Transcript

2025-02-07 00:45:13 ET

A.P. Moller - Maersk AS (AMKBY)

Q4 2024 Earnings Call Transcript

February 06, 2025 05:00 AM ET

Company Participants

Vincent Clerc - Chief Executive Officer

Patrick Jany - Chief Financial Officer

Conference Call Participants

Alexia Dogani - J.P. Morgan

Dan Togo Jensen - Carnegie

Robert Joynson - BNP Paribas Exane

Omar Nokta - Jefferies

Lars Heindorff - Nordea

Alex Irving - Bernstein

Ulrik Bak - SEB

Parash Jain - HSBC

Jacob Lacks - Wolfe Research

Muneeba Kayani - Bank of America

Presentation

Vincent Clerc

Welcome everyone, and thank you for joining us for this earnings call today as we present our Fourth Quarter and Full Year Results for 2024. My name is Vincent Clerc, I'm the CEO of A.P. Moller - Maersk, and with me today in the room is our CFO, Patrick Jany.

We start with the highlights from the year that just passed. On the back of a strong fourth quarter, we closed the books for 2024 with a full year EBITDA of $12.1 billion and an EBIT of $6.5 billion. This figure marks the best financial year in Maersk's history, outside the pandemic fueled boom of the years 2021 and 2022. As important as these financial results are the great strides that we have made internally in making the business better, stronger and more resilient notwithstanding the high uncertainty we saw in our external environment and I want to thank all of the team for achieving this.

We made clear and tangible progress in our growth segment Logistics & Services with a sustainable step change in margin during the year from 2.5% in the first half to 4.6% in the second half. This step change owes to our continued focus on productivity and cost management while achieving close to 10% growth here in the last quarter. We are not yet where we want to be, but the operational improvements that we have made in Fulfilled by Maersk are starting to show results. Then we have Ocean which demonstrated strong operations and more importantly agility in the wake of the Red Sea disruptions as well as strong market demand. We responded to the changes in operating environment decisively while maintaining stable and reliable operation for our customers. Meanwhile, we continued to look forward and planned and prepared for our new Ocean network, Gemini. In Terminals we did not only maintain but surpassed the strong performance from the year prior. The portfolio of gateway terminals generated an impressive return on invested capital of 13.5%, all the while undertaking growth investments to expand and extend the portfolio for the future. ...

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