A.P. Moller - Maersk AS

Analysis

Business Description

A.P. Moller - Maersk AS (APMM) is a provider of container logistics services. The company offers shipping and cargo, supply chain, freight forwarding and digital solutions. It serves fashion and lifestyle, retail, automotive, chemicals, technology and electronics and fast-moving consumer goods (FMCG) sectors.

The company operates through four reportable business segments: Ocean, Logistics & Services, Terminals & Towage, and Manufacturing & Others.

As of December 31, 2020, APMM had 300 ports and served in 130 countries in the Americas, Europe, Africa and Asia-Pacific.

Business Segments
Overview

- Provides third-party logistics services such as freight forwarding, customs brokerage, warehouse and distribution, supply chain visibility and control, supply chain management solutions and supply chain design and optimization services through Damco brand.

- Offers container inland services, inland haulage activities (intermodal), and trade finance services. Includes APM Terminals inland activities.

- Operates cargo aircraft on behalf of UPS through Star Air.

Key Stats

- In FY2020, carried sea freight volumes of 401,369 TEU; air freight volumes of 138,086 tonnes; intermodal volumes of 3,640 kFFE; and managed 77 million cubic meters of supply chain.

Performance

- Reported revenue of US$6,963 million for FY2020, which grew 10% YoY, and reported a CAGR of 7% during 2018-20.

- Accounted for 17.5% of the company's revenue in FY2020.

- Reported EBITDA of US$454 million in FY2020, compared with US$216 million in FY2019.

- Growth in revenue was the result of increase in revenue from warehousing and distribution facilities in North America, Performance Team, air freight forwarding and intermodal activities.

- Growth in EBITDA was the result of various margin optimization initiatives and focus on profitability.

Inventore veritatis
Overview

- Manufactures dry containers and reefer containers. Includes the company’s oil trading business. - Provides training services to the maritime, oil and gas, offshore wind and crane industries.

- Carries out bulk and tanker activities as a part of the Hamburg Sud acquisition.

Performance

- Reported revenue of US$1,254 million for FY2020, which decreased 9% YoY, and reported a negative growth rate of 33% during 2018-20.

- Accounted for 3.2% of the company's revenue in FY2020.

- Reported EBITDA of US$165 million in FY2020, which grew 21.3% YoY.

- Decline in revenue was the result of a 17% decline in revenue from Maersk Supply Service to US$252 million in FY2020, compared with US$306 million in FY2019, due to lower business activities; and 14.3% decline in other revenue to US$415 million in FY2020, compared with US$484 million in FY2019.

- Growth in EBITDA was the result of disciplined cost control.

Overview

- Provides container shipping services through fleet of vessels and unit containers.

- Transports dry, refrigerated and special cargos.

- Offers intermodal service through truck, barge and rail.

- Serves agriculture, apparel, automotive, chemicals, electronics, machinery seafood and pharmaceutical industries. Includes ocean and hub activities.

- Carries out ocean activities through Maersk Liner business unit, which includes brands such as Maersk Line, Safmarine, Sealand, Alianca and Hamburg Sud.

- Provides port and inland infrastructure for global commerce through APM Terminals brand.

Key Stats

- As of December 31, 2020, owned vessels of 301 fleet and chartered 405 fleet with a capacity of 4.0 million Twenty-foot equivalent unit (TEU).

- In FY2020, transported 12.6 million Forty-Foot Equivalent unit (FFE) of products at an average freight rate of US$2,000 per FFE.

Performance

- Reported revenue of US$29,175 million for FY2020, which grew 1.4% YoY, and reported a CAGR of 1.4% during 2018-20.

- Accounted for 73.4% of the company's revenue in FY2020.

- Reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of US$6,545 million in FY2020, which grew 47.5% YoY.

- Growth in revenue was the result of 2% increase in freight revenue to US$24,920 million in FY2020, compared with US$24,466 million in FY2019.

- 8% increase in loaded freight rate to US$2,000 per FFE in FY2020, compared with US$1,853 per FFE in FY2019.

- Growth in EBITDA was the result of higher revenue and lower cost base due to agile capacity deployment along with a lower bunker price and consumption.

Overview

- Carries out terminals’ activities in ports fully or partially controlled by the APM Terminals brand.

- Provides offshore towage and salvage services under the Svitzer brand.

Key Stats

- Carried out 138,000 harbor towage in FY2020.

- In FY2020, had 66 terminals and carried out 11.5 million moves.

- In FY2020, had 377 vessels of which 355 were owned and 22 were chartered.

Performance

- Reported revenue of US$3,807 million for FY2020, which decreased 3.6% YoY, and reported a CAGR of 0.5% during 2018-20.

- Accounted for 9.6% of the company's revenue in FY2020.

- Reported EBITDA of US$1,205 million in FY2020, which grew 7.8% YoY.

- Terminal operations reported 3.9% decline in terminals revenue to US$3.2 billion in FY2020, compared with US$3.3 billion in FY2019 due to lower volumes.

- Terminal operations reported an 8.3% growth in EBITDA to US$989 million in FY2020, compared with US$913 million in FY2016 due to higher revenue per move and reductions of costs in several terminals.

- Towage operations report a 2% decline in revenue to US$681 million in FY2020, compared with US$695 million in FY2019, due to lower rate per tug job and decrease in volume due to negative COVID-19 impact.

- Terminal operations recorded a 5.4% increase in EBITDA to US$216 million in FY2020, compared with US$205 million in FY2019, due to lower costs.

Geographical Segments
Performance

- Reported revenue of US$1,612 million for FY2020, which grew 30% YoY, and reported a CAGR of 7.5% during 2018-20.

- Accounted for 4.1% of the company's revenue in FY2020.

Inventore veritatis
Performance

- Reported revenue of US$1,606 million for FY2020 and reported a CAGR of 1.0% during 2018-20.

- Accounted for 4% of the company's revenue in FY2020.

Performance

- Reported revenue of US$747 million for FY2020, which grew 27.5% YoY.

- Accounted for 1.9% of the company's revenue in FY2020.

Performance

- Reported revenue of US$2,193 million for FY2020, which grew 6.7% YoY, and reported a negative growth rate of 0.8% during 2018-20.

- Accounted for 5.5% of the company's revenue in FY2020.

Performance

- Reported revenue of US$268 million for FY2020, which decreased 13.5% YoY, and reported a negative growth rate of 19.2% during 2018-20.

- Accounted for 0.7% of the company's revenue in FY2020.

Performance

- Reported revenue of US$772 million for FY2020, which decreased 36% YoY, and reported a negative growth rate of 23.3% during 2018-20.

- Accounted for 1.9% of the company's revenue in FY2020.

Performance

- Reported revenue of US$1,175 million for FY2020, which grew 15.3% YoY.

- Accounted for 3.0% of the company's revenue in FY2020.

Performance

- Reported revenue of US$848 million for FY2020, which decreased 23% YoY, and reported a negative growth rate of 14.6% during 2018-20.

- Accounted for 2.1% of the company's revenue in FY2020.

Performance

- Reported revenue of US$1,165 million for FY2020, which grew 30.2% YoY, and reported a CAGR of 30.7% during 2018-20.

- Accounted for 2.9% of the company's revenue in FY2020.

Performance

- Reported revenue of US$17,442 million for FY2020, which decreased 11.3% YoY, and reported a negative growth rate of 10% during 2018-20.

- Accounted for 43.9% of the company's revenue in FY2020.

Performance

- Reported revenue of US$335 million for FY2020, which decreased 24.7% YoY, and reported a negative growth rate of 14.9% during 2018-20.

- Accounted for 0.8% of the company's revenue in FY2020.

Performance

- Reported revenue of US$731 million for FY2020, which grew 16.2% YoY.

- Accounted for 1.8% of the company's revenue in FY2020.

Performance

- Reported revenue of US$708 million for FY2020, which decreased 49.1% YoY, and reported a negative growth of 30.9% during 2018-20.

- Accounted for 1.8% of the company's revenue in FY2020.

Performance

- Reported revenue of US$10,138 million for FY2020, which grew 50.6% YoY, and reported a CAGR of 22.6% during 2018-20.

- Accounted for 25.5% of the company's revenue in FY2020.