Royal Caribbean Upbeat on 2024 Profit
Royal Caribbean Group projected 2024 profit above Wall Street expectations after robust demand for cruise vacations and steeper ticket prices helped it beat fourth-quarter earnings estimates on Thursday.With travelers opting for cruises instead of more expensive land-based vacation options, operators are experiencing record levels of bookings compared to pre-pandemic levels, giving them enough room to mark up ticket prices."2023 was an exceptional year, propelled by unmatched demand for our brands from new and loyal guests…
US Offshore Wind Writedowns Seen Soaring with Orsted Earnings
European energy companies, including Denmark's Orsted, will likely write down more of their U.S. offshore wind investments this week after BP and Equinor booked $840 million in impairments in recent days.Orsted, the world's largest offshore wind developer, said in August it may see impairments of 16 billion Danish crowns ($2.3 billion) on its U.S. offshore developments due to supply chain problems, soaring interest rates and a lack of new tax credits.Orsted, which was not immediately available for comment…
ABB Flags Q4 Slowdown and China Challenges
ABB flagged a slowdown in revenue growth in the fourth quarter and reported a continued decline in orders in China, sending its shares lower even as the Swiss engineering group posted third-quarter earnings broadly in line with forecasts.The maker of industrial drives and motors noted some signs of stabilisation in China, its second-largest market and said higher quarterly revenues and earnings were boosted by price increases outstripping cost inflation, and higher volumes.But…
Arcosa Eyes Barge Market Recovery
Infrastructure-related products and solutions provider Arcosa said it is seeing signs of improvement in the U.S. barge building business following several years of low order levels.The Dallas-based company said in its second quarter earnings report that it received approximately $81 million in new barge orders, including mostly hopper barges scheduled for delivery in 2024.Arcosa's barge backlog at the end of the quarter was $287.1 million, up from $131.8 million at the end of the second quarter of 2022.
Dominion Sees Virginia Offshore Wind Farm Complete in Late 2026
U.S. energy company Dominion Energy said on Friday that its roughly $10 billion Coastal Virginia Offshore Wind project was on budget and on track for completion in late 2026.The company said in its second quarter earnings presentation that it expected to get a Record of Decision from the U.S. Bureau of Ocean Management (BOEM) in the second half of 2023. The Record of Decision is a step in the process before construction can start.The roughly 2,600-megawatt (MW) project consists of 176 turbines…
Maersk Warns of Slower Demand for Container Shipping
Shipping group A.P. Moller-Maersk warned on Friday of a steeper decline in global demand for shipping containers by sea this year, prompted by muted economic growth and customers reducing inventories.The company, one of the world's biggest container shippers with a market share of around 17%, said it expects container volumes to fall by as much as 4%. It had previously forecast a decline of no more than 2.5%.Maersk transports goods for retailers and consumer companies such as Walmart…
Maersk Expects Recent Drop in Container Demand to Stabilize by Mid-year
Shipping group Maersk on Thursday reported first-quarter earnings above expectations and maintained its 2023 profit guidance as it expects a recent drop in demand for container shipments to stabilize around mid-year.Maersk, which transports goods for retailers and consumer companies such as Walmart, Nike and Unilever, said the number of containers it loaded onto ships between January and March fell by 9% from a year earlier, while freight rates fell by 37% on average."We delivered a solid financial performance in a challenging market with lower demand caused by continued destocking…
Exxon Banks Record $56B Profit in '22
Exxon Mobil Corp posted a $56 billion net profit for 2022, the company said on Tuesday, taking home about $6.3 million per hour last year, and setting not only a company record but a historic high for the Western oil industry. Oil majors are expected to break their own annual records on high prices and soaring demand, pushing their combined take to near $200 billion. The scale has renewed criticism of the oil industry and sparked calls for more countries to levy windfall profit taxes on the companies.Exxon's results far exceeded the then-record $45.2 billion net profit it reported in 2008…
Maersk CEO Sees Plenty of Dark Clouds on the Horizon. Container Demand Set to Drop
Shipping group Maersk warned on Wednesday of slowing demand for transport and logistics as a global recession looms and cut its forecast for container demand this year, even as it beat third-quarter earnings expectations. "It is clear that freight rates have peaked and started to normalize during the quarter, driven by both decreasing demand and easing of supply chain congestion," Chief Executive Soeren Skou said in a statement. The company's shares were down 4.4% at 0839 GMT, and have now fallen 38% since hitting a record high of 24,920 Danish crowns on Jan. 13.
Eagle Bulk Sells Its Oldest Vessel
U.S.-based shipowner Eagle Bulk Shipping announced it has sold its oldest vessel as part of its ongoing fleet renewal program.The company revealed in its second quarter earnings report that it sold the 55,362 DWT, 189.99-meter-long bulk carrier Cardinal for a total consideration of $15.8 million.The 2004-built geared Supramax was the final remaining ship from Eagle Bulk's original fleet at its inception in 2005.The vessel is expected to be delivered to its new owner, reportedly a Chinese buyer, in the third quarter of 2022.
Maersk Finds Potential Buyers for Its Stake in Russian Port Operator
Maersk has found possible buyers for its stake in Global Ports Investments, which operates ports in Russia as it withdraws from the country following a final cargo shipment this week, the Danish shipping group said on Wednesday.Maersk put its 30.75% share of Global Ports up for sale as it decided to quit Russia because of its invasion of Ukraine.It said talks were taking place with several potential buyers without giving names and that it did not expect to have to give the stake…
China Lockdowns May Worsen Container Congestion, Maersk Says
Bottlenecks in global container shipping could worsen later this year as a result of new COVID-19 lockdown measures in China, shipping group Maersk warned on Wednesday.Maersk, often seen as a barometer for global trade, said a surge in consumer demand, pandemic-related congestion in major ports and more recently an airspace closure following Russia's invasion of Ukraine have slowed down container shipments and prompted a spike in freight rates."Further challenges arise from the ongoing COVID-19 lockdowns in China…
Maersk Makes Last Cargo Shipment to a Russian Port
Shipping group Maersk made its last cargo shipment to a Russian port this week and took impairment losses and writedowns of $718 because of Russia's invasion of Ukraine, the Danish firm said on Wednesday.Maersk, which has decided to withdraw completely from Russia, carried out its last cargo operation in a Russian port on Monday, but still has 20,000 containers stranded in Russia.Maersk said in March it would sell all its assets in Russia, including its 30.75% stake in Russian port operator Global Ports Investments…
Wärtsilä's Earnings in Line with Expectations
Finland's Wartsila, a top global marine and energy equipment maker, posted first-quarter earnings roughly in line with expectations on Thursday, citing increased uncertainty in demand and supply in its end markets.Wartsila said its comparable operating profit increased 61% to 65 million euros ($68.25 million) from 41 million in the year-ago quarter, against a mean estimate of 67.2 million euros expected by 14 analysts in a Vara Research poll commissioned by the company.($1 = 0.9524 euros)(Reuters - Reporting by Anne Kauranen; Editing by Jacqueline Wong)
Recovery, Resilience and Demand Shifts to Drive Inland Waterway Cargo Flows
Waterway traffic is coming back. November 2021 saw 52.1 million tons moving on the U.S. inland waterway system, the highest monthly tonnage since October 2019, a few months before the onset of the COVID-19 pandemic, and the shutdowns and stoppages of early 2020. Flows estimated by the Bureau of Transportation Statistics (BTS), part of the U.S. Department of Transportation, based on data from the U.S. Army Corps of Engineers (USACE) show a 25% rise from June 2020. Data in a presentation by The Waterways Council Inc (WCI)…
CMA CGM's Earnings Soar on Shipping Rush
Shipping group CMA CGM on Friday reported a surge in third-quarter earnings and said it expected an even stronger performance for the end of the year as intense demand kept freight rates high and container capacity stretched.French-based CMA CGM, one of the world's largest container lines, said net profit rose to $5.6 billion in the third quarter from $567 million in the same period last year, while core EBITDA earnings rose to $7.1 billion from $1.7 billion.An economic rebound following a coronavirus pandemic costs has disrupted supply chains and exacerbated logistics problems like ageing inf
Maersk Says Port Delays Will Stretch into New Year
The chaos that has bedeviled global supply chains in recent months will extend into next year, with a lack of truck drivers preventing hundreds of container vessels from offloading goods around the world, shipping group Maersk said.“The whole system has become one gigantic bottleneck,” Chief Executive Soren Skou told reporters on Tuesday.Skou said the biggest problem preventing containers from leaving ports is a lack of labor, particularly drivers of heavy goods vehicles in the…
Maersk Triples Quarterly Income Despite Lower Container Volumes
Shipping group A.P. Moller-Maersk said on Tuesday record-high freight rates boosted quarterly earnings despite lower container volumes due to congestion at ports.The coronavirus pandemic has prompted a shortage of container ships and logjams at ports at a time of high consumer spending, pushing the cost of transporting freight to record levels.Maersk, which handles one in five containers shipped worldwide, said its main Ocean business is now expected to grow below that of global container demand…
Maersk Lifts 2021 Outlook Again as Freight Rates Rise
Danish shipping group A.P. Moller-Maersk lifted its 2021 outlook again on Thursday, riding the rise in freight rates which has resulted from a congested global supply chain.The coronavirus pandemic has prompted shortages of container ships and logjams at ports at a time of high consumer spending, sending the cost of transporting freight to record levels."The strong result is driven by the continuation of the exceptional market situation within Ocean, which have led to further increases in both long- and short-term container freight rates…
Maersk Lifts Outlook as Supply Chain Disruptions Boost Shipping Rates
The world's biggest container shipping company, A.P. Moller-Maersk, on Monday lifted its full-year earnings outlook after reporting strong preliminary quarterly results as chaotic conditions in the global supply chain pushed freight rates higher.In the wake of the coronavirus pandemic, shortages of container ships and logjams at ports around the world combined with high consumer demand for material goods have caused freight rates to skyrocket to record levels."The strong quarterly…
CMA CGM Earnings Jump as Shipping Rush Continues
CMA CGM, one of the world's largest container shipping groups, on Friday posted a jump in first-quarter earnings and said it expected strong demand for transporting consumer goods to continue for the rest of the year.French-based CMA CGM's net profit rose to $2.1 billion in the first quarter from $48 million in the same period last year, while core EBITDA earnings rose to $3.2 billion from $973 million, the group said in a statement.Container lines such as market leader Maersk have seen a boom in demand as the COVID-19 crisis has stoked buying of packaged goods by locked-down consumers, while
Tanker Firm Euronav Says Large Crude Tonnage Still Abundant. Sees Slow Freight Rates Recovery
Belgian tanker operator Euronav on Thursday reported higher-than-expected first-quarter earnings, but said the shipping market was pressured by restricted crude supply and a slow recovery in freight rates.The group, one of the largest tanker companies in the world, said COVID-19 restrictions were depressing demand for crude oil and high levels of compliance with OPEC+ output supply cuts have restricted the number of cargoes available for commercial transit, deferring a recovery in freight rates.The Antwerp-based company posted earnings before interest…
CMA CGM Sees Strong Shipping Demand Continuing in First Half
Container shipping group CMA CGM said on Friday that it expected activity to remain strong in the first half of this year after brisk demand for consumer goods boosted its profits at the end of last year.France-based CMA CGM said its fourth-quarter earnings before interest, tax, depreciation and amortization (EBITDA) reached $2.23 billion, compared with $1.01 billion in the year-earlier period.Quarterly group net profit came to $1.0 billion.