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(Sharecast News) - AP Moller-Maersk posted a sharp deterioration in quarterly earnings on Thursday, and warned of a "highly uncertain" outlook for global container demand on the back of war in the Middle East.
Posting first-quarter numbers, the Danish logistics giant said revenues had fallen 2% to $12.97bn, while earnings before interest, taxes, depreciation and amortisation tumbled to $1.73bn from $2.71bn. However, that was better than the $1.66bn expected by analysts.
Maersk said conflict in the Middle East, which has seen the vital Strait of Hormuz grind to a halt and caused global energy prices to soar, had weighed on sentiment. Costs increased by around $500m per month because of the disruption, it confirmed, though to date much of that had been passed on through higher freight rates.
The company maintained full-year guidance to grow in line with the global container market - by between 2% and 4% - and for EBIT of between a $1bn profit and a $1.5bn loss. The range reflected industry overcapacity alongside different scenarios on the timing of the reopening of the Red Sea and Strait of Hormuz, it confirmed.
But the world's second-largest container shipping line also warned: "The outlook for container demand in 2026 is highly uncertain. Higher energy prices and constraints on trade in the Upper Gulf region, which in 2025 accounted for around 6% of global trade, pose downside risks to growth momentum.
"The balance of risks is on the downside and more adverse outcomes cannot be ruled out."
As at 1400 BST, shares in the Copenhagen-listed company - long seen as a bellwether for global trade - had tumbled 8%.
Vincent Clerc, chief executive, said: "We've seen strong demand across most regions this quarter, supporting robust volume growth in our three business segments. In Ocean in particular, market volatility remains high and industry oversupply continues to put pressure on rates.
"In this environment, our disciplined focus on cost management contributes to resilient performance."
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