AP Moller-Maersk's earnings before interest, taxes, depreciation, and amortisation (EBITDA) have plunged 92% year-on-year (YoY) for the first quarter (Q1) of 2024, mainly due to a prolonged Red Sea crisis.

While the gross revenue was $3.2 billion for Q1 in 2023, the EBITDA decreased to $1.5 billion. Excluding depreciation and amortisation, earnings before interest and taxes (EBIT) fell to $117 million from $2.3 billion for the same YoY period.

The holding company of the world's second-largest container line by capacity stated that the results were driven by good terminal performance, higher demand, and the ongoing Red Sea crisis.

Maersk anticipates that these conditions will continue well into the second half of the year, so it expects to lift the lower end of its guidance range to level out from $-2.0.

Despite the disruption in vessel traffic through the Suez Canal due to the Red Sea crisis, Maersk CEO Vincent Clerc remains optimistic. He stated, "We had a positive start to the year, with a first-quarter developing precisely as we expected. Demand is trending towards the higher end of our market growth."

Recovery from maritime upheaval is expected to result in an improved outlook for the coming quarters, as these conditions will persist for most of the year. However, the anticipated high number of new vessels being delivered during this and next year is expected to eventually offset these factors and put the ocean markets under renewed pressure.

Clerc added, "We therefore relentlessly continue to pursue our cost agenda with the aim of rolling back the disruption-linked cost in ocean (freight) and restoring margins in logistics and services."