Maersk's Profits Hit as Red Sea Disruption Leads to Share Buyback Suspension

Maersk warned that container shipping overcapacity would impact profits more than expected this year and downplayed the boost from the jump in freight rates due to Red Sea disruptions, leading to a 17% plunge in its shares. The company suspended its share buyback program and expects the oversupply of vessels to affect earnings in the coming years, with a projected underlying EBITDA of $1-6 billion for 2024, below analyst expectations. CEO Vincent Clerc cautioned against expecting a significant profit boost from the Red Sea crisis and emphasized the long-term impact of overcapacity on shipping prices.