Maersk doubles Q2 profit to US$1.3b, raises full-year outlook

Shipping company Maersk announced on Thursday that it had doubled its second-quarter profits to US$1.3 billion, as reported by AFP. During the April to June period, the company's net profit rose from US$614 million in the previous year to US$1.3 billion. This surge in earnings was attributed to robust demand, particularly in Asia.

Despite the ongoing conflict in the Middle East, which disrupted tanker and cargo traffic through the Strait of Hormuz, Maersk's global team managed to capitalize on opportunities in challenging markets, leading to significant volume and earnings growth across its businesses. CEO Vincent Clerc expressed satisfaction with the company's performance, stating that it was able to deliver strong results despite the volatile situation in the region.

However, Maersk cautioned that the Middle East situation remains unpredictable and continues to impact logistics networks and customer supply chains, resulting in increased operating costs. Nevertheless, the company credited higher freight rates and lower depreciation expenses, due to changes in vessel useful lives, for contributing to its improved financial performance.

For the entire year, Maersk has revised its earnings guidance, projecting an Ebitda operating profit range of US$10.5 billion to US$12.5 billion, an upward revision from the previously expected US$8-10 billion. Maersk's shares experienced a modest increase of around 4.3% in early trading on the Copenhagen stock exchange following the earnings announcement.