Shipping giant Maersk shares slide 15% after suspending share buybacks amid Red Sea disruption
Publishing timestamp: 2024-02-08 12:05:56
Summary
Danish shipping giant Maersk is facing "high uncertainty" in its 2024 earnings outlook due to disruptions in the Red Sea and an oversupply of shipping vessels. The company's shares have dropped significantly, and it has suspended its share buyback program. Maersk expects lower earnings this year compared to the previous year. The disruptions in the Red Sea, caused by attacks from Yemen's Houthi rebels, have led to increased delivery times and costs, potentially impacting global supply chains and increasing inflation. Maersk does not anticipate significant profits from the situation and is absorbing costs to keep the supply chain functioning.
Sentiment: NEGATIVE
Tickers: MAERSK.B-DK, DP4B-DE,
Keywords: earnings, world markets, business news, ap moeller - maersk a/s, london,