DANISH shipping giant Maersk posted a “strong rebound in profitability” for 2024 on last year to post the group’s third-best annual result in its history.

Red Sea rerouting was the key driver behind the group’s improved performance, a factor that exacerbated supply chain disruptions throughout the year as “peak freight rates and strong volumes” boosted Maersk’s Ocean business.

Earnings before interest and tax increased by $2.6bn to $6.5bn, as revenues climbed to $55.5bn from $51bn.

“Our ability to navigate shifting circumstances and ensure steady supply chains for our customers was put to the test throughout 2024” said Maersk chief executive Vincent Clerc.

“We successfully capitalised on increased demand while enhancing productivity and rigorously managing costs — all of which contributed to our strong financial performance.”

For the fourth quarter of 2024, Maersk also delivered an equally “robust result”. This was supported by “strong market demand and better-than-expected freight rates”. 

“Ocean profitability increased significantly year over year, although revenue decreased sequentially following a normalisation in freight rates,” said Maersk.

The final quarter of last year also generated the highest-ever revenue ($1.2bn) and ebit ($300m) for its Terminal segment, following a significant increase in revenue per move, coupled with higher volumes and increased storage fees. Maersk said it will look to expand its terminal portfolio through new concessions, as part of its strategic priorities for 2025.

For the year ahead, Maersk said that it expects its container volumes to grow in line with market expectations (4%), which will put its underlying ebit at between $0 and $3bn for 2025. This though will hinge largely on the reopening of the Red Sea.

“Maersk assumes that the Red Sea reopens mid-year for the low end of the guidance, and reopens at year-end for the high-end,” read the group’s financial report.

“Maersk’s outlook for 2025 is subject to considerable macroeconomic uncertainties impacting container volume growth and freight rates.”

On Wednesday, Maersk also revealed that has initiated a 12-month share buyback programme of up to DKK14.4bn ($2bn). The first phase will run from Friday (February 7) through to August 6, 2025, and will be limited to a total market value of DKK7.2bn, or around $1bn.

“The purpose of the programme is to adjust the capital structure of the company ultimately through cancellation of shares repurchased,” Maersk said.

View Maersk’s full 2024 annual report.