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Maersk Loses $700 Million After Leaving Russia

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Danish container shipping company and freight forwarder A.P. Møller-Maersk lost more than $700 million in the first quarter to the war in Ukraine. According to the transport group, this is due to the costs of leaving its activities in Russia.

 

The shipping company, which controls about one-sixth of the global container trade, has stopped shipping new cargo to Russia and has put up the stakes it owns in ports in the country for sale. Maersk completed its last cargo at a Russian port on Monday, May 2, and the company said on Wednesday when it released its final first-quarter figures.

Maersk already announced in March that it would sell its interests in Russian ports because of the Russian invasion of Ukraine. The group has a minority share of almost 31 percent in Global Ports Investments. This includes six port terminals in Russia and two in Finland. The departure from Russia has depressed first-quarter earnings before interest and taxes by USD 718 million, or about EUR 682 million.

The company already released preliminary results on April 26, which were better than analysts had expected. Maersk also raised its full-year profit forecast, thanks to strong container demand and sharply increased freight rates. However, the group also indicated that global demand for containers could rise or fall slightly this year by 1 percent due to problems in the logistics chains and shortages of containers.

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