2023 Feb - AP Moller Maersk

 AP Moller Maersk is a Danish conglomerate with a market capitalization of approximately $15 billion as of 2021. It operates in a variety of sectors including shipping, logistics, and energy. In terms of revenue, the company generated approximately $44 billion in the year 2020, which represents a significant drop from previous years due to the impact of the COVID-19 pandemic on global trade and the shipping industry.

Maersk makes its money primarily through its shipping and logistics businesses. The company is the largest container shipping company in the world and operates a fleet of over 700 vessels, serving customers in over 130 countries. Its logistics division provides transportation and supply chain management services to a wide range of industries, including retail, manufacturing, and energy. The company also operates a number of terminals and ports around the world, which provide additional revenue through the handling of container and other cargo.

The company is headquartered in Copenhagen, Denmark and has a significant global presence with operations in over 130 countries. In addition to its shipping and logistics businesses, AP Moller Maersk is also active in the energy sector, with interests in oil and gas production, as well as renewable energy sources such as wind and solar power. To see a combination of the investments in renewable energy sources combined with logistics is very interesting I think.

The outlook for Maersk in the upcoming year is positive, with the company expecting to benefit from the global economic recovery following the COVID-19 pandemic. The shipping industry is expected to see increased demand as trade volumes continue to grow, and the company is well positioned to take advantage of this growth with its large, modern fleet and extensive network of ports and terminals. In addition, the company's investments in digital technologies, such as blockchain and artificial intelligence, are expected to further improve its competitiveness and drive growth in the coming years.

In terms of dividend yields, Maersk has a modest dividend yield of approximately 1.5%, which is lower than the average for its industry. However, the company has a strong track record of dividend payments, having consistently paid dividends over the past decade.

One reason why I think Maersk is a good asset to hold onto for the long term is its dominance in the global shipping industry. The company has a large and modern fleet, a well-established network of ports and terminals, and a strong reputation for reliability and efficiency, which positions it well to capitalize on growth in global trade in the coming years. In addition, the company's investments in digital technologies and its focus on sustainability are expected to further improve its competitiveness and drive growth over the long term.

One argument against holding Maersk as a long-term asset is the potential impact of climate change on the shipping industry. The shipping sector is a significant contributor to global carbon emissions, and there is increasing pressure from governments and customers for shipping companies to reduce their carbon footprint. However, AP Moller Maersk is taking steps to address this challenge, such as investing in renewable energy and developing more fuel-efficient vessels, which should help to mitigate the potential impact of climate change on its business.

In conclusion, Maersk is a well-established company with a strong presence in the global shipping and logistics industries. With a large and modern fleet, extensive network of ports and terminals, and a focus on digital technologies and sustainability, the company is well positioned to capitalize on growth in global trade and drive long-term growth. While there are potential challenges to the shipping industry from climate change, Maersk is taking steps to address these challenges and maintain its competitiveness over the long term.