Maersk Announces a Bumper Q4

Ahead of full-year results next month, Maersk on Jan. 14 updated the market with a strong performance update for the fourth quarter, with EBITDA coming in at $24 billion, ahead of even recently updated guidance of $22 billion-$23 billion. As a function of continued supply chain bottlenecks and capacity shortages on prime routes, carriers like Maersk are cashing in on the situation, with freight rates up 80% year over year in the quarter. We are taking this opportunity to increase our near-term estimates, as freight rates are likely to remain elevated for at least the next two quarters. Despite raising our fair value estimate to DKK 23,100 per share, we view the shares as fairly valued, with the market generally buoyed on the prospects of global freight carriers in this highly unusual situation.