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08 Feb, 2024 09:55

Maersk suspends share buyback, warns on outlook

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Maersk freighterFlickr (PD)

Maersk shares sank on Thursday after the shipping giant suspended its share buyback programme as it warned that oversupply and disruption in the Red Sea would impact earnings this year.

Citing "the significant oversupply challenges and high uncertainty about the duration and degree of the Red Sea disruption", Maersk said it now expects underlying earnings before interest, tax, depreciation and amortisation of $1bn to $6bn for the full year 2024, versus $9.6bn in 2023.

It expects to make an underlying EBIT loss of up to $5bn or break even.

For the fourth quarter, underlying profits fell to $839m from $6.5bn in the same period a year earlier, versus expectations of $1.1bn.

The company also said it has decided to terminate the fifth phase the share buyback programme initiated in November 2023 with immediate effect. A re-initiation will be reviewed "once market conditions in Ocean have settled," it said.

At 0945 GMT, the shares were down 12% at DKK11,315.


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Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author or publisher.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.

The value of investments can fall and you may get back less than you invested.