Danske Bank analyse: Maersk – Chairman states that low debt enables acquisitions

Maersk (MW): At today’s AGM Chairman Jim Hagemann Snabe stated that the Group’s strong balance sheet and low debt level enables Maersk to increase investments and at the same time return cash to shareholders. This is the same message as the company has voiced in recent quarters in our view. Furthermore, Jim Hagemann Snabe stated that he expects the shortage of containers between China and the US to “normalize over the summer” although this estimates comes with a lot of uncertainty as US stimulus checks enter the economy. This is in-line with our view that the majority of the bottlenecks in the container industry will be resolved during the coming months as efficiency in US ports increase as port workers return to work as the US rolls out Covid-19 vaccinations. We continue to expect Maersk to focus on smaller bolt-on acquisitions in the Logistics segment in order to supplement the Maersk Line container offering. We continue to believe that Maersk will target bolt-on M&A/shareholder remuneration in favor of a BBB+ credit rating. Overall we see today’s AGM as credit neutral.