Maersk suspends share buyback, warns on outlook

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.