Maersk's Net Profit Sinks Amid Red Sea Attacks
Mohammad Ali (@ChaudhryMAli88) Published May 02, 2024 | 01:20 PM
Copenhagen, (APP - UrduPoint / Pakistan Point News - 2nd May, 2024) Danish shipping giant Maersk posted a huge drop in net profit for the first quarter on Thursday as Yemeni rebel attacks are forcing it to avoid the vital Red Sea route.
Maersk reported a net profit of $177 million in the first three months of the year, a 13-fold drop from the same period last year.
Turnover fell 13 percent to $12.4 billion, slightly lower than forecast by analysts surveyed by financial data firm FactSet.
The company, however, raised its outlook for the full year, citing higher demand and increased rates and costs due to the supply chain disruptions in the Red Sea.
It now expects an underlying core profit ranging between $4 billion and $6 billion, up from $1 billion-$6 billion previously.
"We had a positive start to the year with a first quarter developing precisely as we expected," Maersk chief executive Vincent Clerc said in a statement.
"Demand is trending towards the higher end of our market growth guidance and conditions in the Red Sea remain entrenched," he said.
"This not only supported a recovery in the first quarter compared to the previous quarter but also provided an improved outlook for the coming quarters, as we now expect these conditions to stay with us for most of the year."
Iran-backed Huthi rebels, who control the Yemeni capital Sanaa, and much of the country's Red Sea coast, have launched dozens of attacks on ships since November, claiming solidarity with Palestinians caught up in the Israel-Hamas war.
The United States in December announced a maritime security initiative to protect Red Sea shipping from the attacks, which have forced commercial vessels to divert from the route that normally carries 12 percent of global trade.
Recent Stories
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 17 May 2024
Today Gold Rate in Pakistan 17 May 2024
Ukraine trying to 'stabilise' front as Russia pushes northeast
SPSC announces final results of Combined Competitive Examination 2020
Slovak PM is able to speak few sentences in serious condition
Agriculture dept using all resources to obtain cotton sowing target
Tunisia president blasts foreign criticism of arrests
Court seeks arguments in PTI founder's bail plea
'Good neighbour': The small-town Slovak writer suspected of PM shooting
Russia expels UK defence attache in tit-for-tat move
Court reserves verdict in PTI founder's acquittal plea
Cannes film shocks with fairy-tale horror on abortion
More Stories From World
-
Rapidus 'last opportunity' to put Japan back on global chip map
2 minutes ago -
Minister Salik meets Addilah company officials before Pak Hujjaj’s departure for Makkah
3 minutes ago -
Tokyo stocks open lower
32 minutes ago -
Biden makes new outreach to Black voters as support slips
33 minutes ago -
Lopez double earns Barca win at relegated Almeria
33 minutes ago -
Stocks waver after hitting record highs
53 minutes ago
-
Putin in trade push on final day of China trip
2 hours ago -
Global coral bleaching event expanding to new countries: scientists
2 hours ago -
Swiatek to face Sabalenka for Rome title and Serena record
2 hours ago -
Klopp leaves lasting legacy after restoring Liverpool to elite
3 hours ago -
Chad junta chief officially wins election
8 hours ago -
Trump lawyers vie to discredit key witness Cohen at trial
8 hours ago