Investing.com -- Copenhagen-listed shares in AP Moeller - Maersk (CSE:MAERSKb) inched higher on Tuesday after the shipping giant raised its full-year profit outlook for the second time in a month.
In a statement released on Monday, Maersk said it had been bolstered by "continued strong container market demand" and disruptions caused by an ongoing crisis in the crucial Red Sea shipping region. The company added that these trends, along with signs of further port congestions in Asia and the Middle East and an uptick in freight rates, are expected to contribute to a "stronger financial performance in the second half of 2024."
The group now expects to post annual underlying earnings before interest, taxes, depreciation and amortization of $7 billion to $9 billion, up from its prior guidance of $4 billion to $6 billion. Income before interest and taxes is seen at $1 billion to $3 billion, an improvement from its earlier estimate for $0 billion to a loss of $2 billion. Free cash flow is also tipped to be at least $1 billion.
Maersk previously upgraded its guidance in May following its first-quarter results, citing increased freight rates due to the longer distance ships had to sail to evade potential conflict in the Red Sea.
However, the firm noted that trading conditions remain subject to "higher than normal volatility" given the uncertainty around the situation in the Red Sea and "future supply and demand."
Maersk, widely viewed as a bellwether of world trade activity, will deliver its second-quarter interim results of August 7.