Giant gantry cranes and off loading freighter in Haifa container port, Israel.
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LONDON — Danish delivery giant Maersk on Thursday flagged “excessive uncertainty” in its 2024 earnings outlook as Red Sea disruptions continued to weigh on the business.
The firm additionally mentioned that it will be suspending share buybacks on the again of the uncertainty.
Maersk mentioned it anticipated underlying EBITDA (or earnings earlier than curiosity, tax, depreciation and amortization) of between $1 billion and $6 billion this yr, in comparison with the $9.6 billion recorded in 2023.
“The affect of this case is inflicting new uncertainty for a way that is going to play out from an earnings perspective all year long,” CEO Vincent Clerc instructed CNBC’s “Squawk Box Europe.”
“We have little or no visibility as as to if this can be a state of affairs that can resolve in a matter of weeks or months, or whether or not that is one thing that’s going to be with us for the complete yr,” he added.
In an announcement, the corporate added that its board had determined to “instantly droop the share buy-back programme, with a re-initiation to be reviewed as soon as market circumstances in Ocean [division] have settled.”
Global provide chains have confronted severe disruption since late 2023 after main delivery corporations started diverting journeys away from the Red Sea following a string of assaults by Yemen’s Houthi rebels.
The Iran-aligned group has targetted business vessels with drones and missiles in what they are saying is an act of solidarity with Palestinians amid the continued Gaza-Israel warfare.
This is a creating information story and will probably be up to date shortly.