A.P. Moeller-Maersk A/S

Looking beyond IMO 2020 towards low-carbon maritime shipping

April 10, 2019

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In March of 2019, Maersk A/S partnered with the Dutch Sustainable Growth Coalition (DSGC) to pilot a 25,000-nautical mile roundtrip from Rotterdam to Shanghai solely powered on biofuel blends, including ~20% second-generation biofuel. In this Research Brief, we explore:

  • The investment case and potentially attractive entry point for Maersk, given depressed sector valuations on global trade fears and the stock trading at a ~1x (forward EV/EBITDA) discount to peers
  • The company’s outperformance on GHG emissions, averaging a 20-pt spread above the industry score since 2016 according to data curated by Truvalue Labs
  • Solutions to closing the gap between business as usual (BAU) carbon emissions and IMO’s 2050 targets, which may require market shifts in the same order of magnitude to those occurring on the back of IMO 2020 sulfur regulation
Industry
Marine Transportation

Material Categories
Accident and Safety Management
Fuel Management
GHG Emissions