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Shipping giant Maersk suspends share buybacks amid Red Sea disruption, flags 2024 earnings uncertainty

·1 min

Danish shipping company Maersk has expressed uncertainty about its earnings outlook for 2024 due to ongoing disruptions in the Red Sea. The company expects its underlying EBITDA for this year to range from $1 billion to $6 billion, which is lower compared to the $9.6 billion reported in 2023. Maersk has also decided to suspend its share buy-back program until market conditions in the Ocean division stabilize. The disruptions in the Red Sea have led to significant supply chain disruptions since late 2023, prompting shipping companies to divert their journeys away from the area. This is causing uncertainty about how the situation will impact earnings throughout the year.