BAKU, Azerbaijan, November 7. Maersk Drilling reported a substantial decrease in revenue, plummeting by USD 10.1 billion to USD 7.9 billion in 3Q 2023, compared to USD 18.0 billion in the same period, Trend reports.
This decline was primarily driven by a stark 58% decrease in freight revenue, with loaded freight rates witnessing a corresponding 58% drop. However, this revenue decline was partially offset by a 5.0% increase in loaded volumes. Additionally, when compared to the second quarter of 2023, revenue decreased by USD 806 million, representing a 9.3% reduction.
The company's EBITDA experienced a significant decrease, amounting to USD 8.8 billion and reaching USD 1.1 billion, compared to USD 9.9 billion. This decline was primarily due to lower revenue, although it was partially offset by lower costs. In comparison to the previous quarter, EBITDA decreased by USD 1.1 billion. The EBITDA margin saw a notable decline, dropping by 41 percentage points to 14.3%, in contrast to the previous margin of 55.1%. Similarly, EBIT plummeted by USD 8.8 billion, resulting in negative USD 27 million, a significant contrast to the positive USD 8.7 billion in the same period of the previous year. In comparison to the second quarter of 2023, EBIT decreased by USD 1.2 billion.
Loaded volumes exhibited a positive trend, marking a 5.0% increase to 3,166k FFE (3,016k FFE). This surge in volumes was driven by heightened demand for shipping services connecting Asia to Europe, North and Latin America, India, Middle East, and Africa markets. Additionally, loaded volumes increased by 260k FFE, representing an 8.9% growth compared to the second quarter of 2023. However, the average loaded freight rate underwent a substantial decline of 58%, settling at 2,095 USD/FFE. This significant drop can be attributed to the contrast with the abnormally high freight rates in Q3 2022, which were recorded at 5,046 USD/FFE. Furthermore, the average loaded freight rate witnessed a decline of 349 USD/FFE or 14% compared to the second quarter of 2023, which was reported at 2,444 USD/FFE.
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