Much too late on our watchlist: MAERSK

A.P. Moller-Maersk is connecting and simplifying the world’s supply chains, and aspires to provide truly integrated logistics. Across oceans, ports, on land and in the air, they are combining their supply chain infrastructure with the power of their people and technology to drive end-to-end innovation that accelerates their customers’ success. By delivering innovative logistics solutions the company believes they can give the companies they serve a significant edge and help them realise their full potential. With a dedicated team of 95,000 talented people, operating in more than 130 countries, they are going all the way to digitise, democratise and decarbonise the world’s supply chains and in doing so reinvent the logistics industry and improve life for all.

Taking a 5 year look on the company's financials, one can learn that the company hardly offers any possibility for prediction. Its figures for revenue, OCF or FCF range from the very low numbers up to the highest unimaginable numbers. A.P. Moller-Maersk is currently the 2nd largest container ship company worldwide behind the Chinese market leader. Despite being in such a good market position and working in such a complicated, demanding cyclical business field, Maersk is strongly challenged by external factors. What the affects on the financial figures between 2015 and 2021 were, can be seen here: 

• Avg Revenue Growth (+10% p. a.)
• Decline of number of shares outstanding (-11%)
• Total equity ratio +9%p up to 63%
• Financial debt ratio +1%p up to 21%
• Avg OCF ratio 16%
• Avg FCF ratio 7%
• Avg adj. Dividend of $2.1bn (4%)
• Net cash 2021 at $1.5bn

Revenues: For financial year 2021, Revenues increased by USD 22.0bn, mainly driven by higher freight rates in Ocean, volume increases and acquisitions in Logistics & Services and higher global demand and increased storage income in Terminals. A significant and increasing part of Ocean volumes is on long-term contracts as part of the strategic transformation, with an increase in the rates of around 50% or USD ~1,000 per FFE during 2021. Five years ago, A.P. Moller - Maersk was a diversified conglomerate. They are now well on their way to becoming a fully integrated logistics company that offers

• ocean,
• air and
• land transportation
• as well as fulfilment services and digital supply chain management

to our customers globally.

The vision the company defined in 2016 of becoming The Global Integrator of Container Logistics – connecting and simplifying our customers supply chains, has been validated by customer demand over the last two years. Their strategy of offering end-to-end and integrated logistics based on control of crucial capacity:

• ships,
• containers,
• warehouses,
• ports and
• aircrafts

has delivered massive growth in Logistics & Services. For customers, the need arises to rethink and realign their global logistical strategy.