• 2018 November 14 16:18

    A.P. Moller - Maersk reports Q3 2018 results

    In the third quarter of 2018, A.P. Moller - Maersk progresses in the strategic business transformation, reporting growth in both Ocean and non-Ocean with a total revenue increase of 31% to USD 10.1bn, 12% excluding Hamburg Süd. Growth in non-Ocean was at 15%, which now contributes 31% of total revenue.
     
    “Well into our transformation, we are progressing with the integration of our business to better serve customers and unlock the full growth potential within Logistics & Services. As a result, I am pleased to see revenue growth in Q3 across the business, including supply chain services. Our profitability and cash flow is improving, positively impacted by the emergency bunker surcharge announced due to the significant increase in bunker price, synergies from Hamburg Süd and strong collaboration between Ocean and our terminal activities,” says Søren Skou, CEO of A.P. Moller - Maersk.

    Compared to Q3 2017, revenue in Logistics & Services increased 7.5 % with supply chain management growing 16%. New products are being developed to improve the customer experience, with results already showing as A.P. Moller - Maersk was first in the world to launch Instant Booking Confirmation to customers in the container industry.

    Furthermore, gateway terminals continued to grow volumes from external customers as well as from Maersk Line and Hamburg Süd reflecting synergy impact from the closer collaboration. Total synergies with Hamburg Süd of minimum USD 500m excluding integration cost are expected by 2019 as the integration is progressing faster than planned.

    Cash conversion improved from 76% to 95%. The free cash flow of USD 2.1bn compared to negative USD 478m in the same period last year led to a lower net debt.

    Volumes in Ocean grew 27%, 5% excluding Hamburg Süd which is above the estimated market growth of 2.7%, but lower than anticipated. Søren Skou elaborates:

    “Our business performance in Ocean is still challenged by increased bunker prices not being fully compensated through higher freight rates. However, we continue to see improved results in the third quarter after a very weak start to 2018.”

    The underlying profit in Q3 amounted to USD 251m compared to USD 254m in the same period last year. Earnings before interests, tax, depreciation and amortization (EBITDA) increased by 16% despite bunker price increasing 47%.

    Unit costs at fixed bunker in Ocean decreased 0.6% compared to Q3 2017, when adjusted for foreign exchange rate and inclusion of Hamburg Süd.

    A.P. Moller - Maersk expects an EBITDA in the range of USD 3.6-4.0bn from previously USD 3.5-4.2bn and reiterates the expectations of a positive underlying profit.

    The organic volume growth in Ocean is now expected in line with the estimated average market growth of 3-4% for 2018 (previously slightly below the estimated average market growth of 2-4%).

    Guidance is maintained on gross capital expenditures (capex) around USD 3bn and a high cash conversion (cash flow from operations compared with EBITDA). For 2019 we now expect gross capital expenditure of USD 2-2.5bn.

    The guidance continues to be subject to uncertainties due to the current risk of further restrictions on global trade and other factors impacting container freight rates, bunker prices and rate of exchange.
     

     
    The Annual 2018 Report is expected to be announced on 21 February 2019.




2018 December 17

11:42 Milaha unveils large plans to upgrade its shipyard in Mesaieed
11:01 IBIA welcomes decision by IMO’s MSC to add new item to its agenda to address concerns about fuel safety
10:43 SENER to design passenger vessel for Tanzanian ferry operator
10:17 Brent Crude futures price down 0.02% to $60.27, Light Sweet Crude – up 0.21% to $51.58
09:58 Port of Singapore throughput in 11M’18 grew by 0.4% Y-o-Y to 575.44 million tonnes
09:40 Floating regasification plant “Marshal Vasilevsky” arrives in Kaliningrad
09:15 Baltic Dry Index is up to 1,401 points

2018 December 16

16:09 Navios Acquisition completes acquisition of Navios Midstream
15:23 Thun Tankers names environmentally adapted tanker Thun Evolve
13:21 Traxens trials IoT network in port environment for first time, at MSC Terminal Valencia
12:32 Executives must watch both sea and air amid trade war tensions, warns Xeneta
10:55 CMA CGM announces FAK rates from ISC to North Europe and the Mediterranean
10:11 PGNiG receives third spot delivery of US-sourced LNG at Świnoujście

2018 December 15

16:23 MOL Passenger Line receives award for outstanding performance in 'Cruise of the Year 2018'
14:53 CMA CGM to implement GRR for India East Coast-West Africa trade
13:51 CMA CGM announces LSS on services from / to China, Hong Kong and Taiwan
12:44 NYK Cruises receives Grand Prix Award for 2018 World Cruise
11:27 TT-Line places order for RoPax "green" ferry with China's Jiangsu Jinling Shipyard

2018 December 14

18:17 Hapag-Lloyd to increase rates from East Asia to Mexico, Central America, West Coast of South America, Caribbean & Panama
17:48 Petersburg Oil Terminal puts into operation its emergency response team
17:33 Vinalines to open container shipping centre next week
17:30 Fairway adjustment will simplify Elbe traffic control already next year
17:27 Final cruise ship for the year calls to the Port of Gothenburg
17:23 The MV Magda joins the Klaveness Bulkhandling pool
17:16 India’s containerised export up 10% in the third quarter of 2018
17:13 FSL Trust announces newbuilding agreement for the construction of two LR2 product tankers
17:13 Havyard project with Havila Kystruten on hydrogen-powered coastal route operations to receive over NOK 100 million in funding from Pilot-E
16:24 World Fuel Services expands bunker operations in US leading up to 2020
15:57 IMO held training workshops in Cameroon Single Window for Foreign Trade Transactions
14:49 Onezhsky Shipyard lays down self-propelled hopper barge of Project HB600
14:08 Irish Continental Group plc takes delivery of cruise ferry W.B.Yeats
13:55 WMU takes part in Ocean Literacy Conference
13:31 First in industry ADNOC co-loads LPG and propylene onto same vessel in Ruwais
13:10 WMU hosted round table discussion regarding key challenges facing IMO
12:53 Bunker market at the Port of Saint-Petersburg, Russia shows mixed price movements (graph)
12:32 Nordic American Offshore secures contract for its PSV NAO Viking
12:11 Rosrybolovstvo supports 2nd Dredging and Hydraulic Engineering Structures Congress
11:50 Association of Commercial Sea Ports celebrates its 30th anniversary
11:24 Gazprom and Itochu sign MoU under Baltic LNG project
11:06 Scorpio Bulkers announces time charter-out agreement
10:48 Domestic ferry safety exercise conducted in Indonesia
10:25 IMO holds training for managing insecurity in west Indian Ocean and Gulf of Aden
10:06 EC adds six new yards to its ‘European List of ship recycling facilities’
09:47 Brent Crude futures price down 0.61% to $61.05, Light Sweet Crude – down 0.4% to $52.37
09:25 GTT notified by HSHI for the tank design of two new LNG carriers for CMM
09:18 Baltic Dry Index is up to 1,365 points
08:06 Fincantieri publishes its Sustainability Plan 2018-2022
07:14 Port of Long Beach cargo volume up to 621,835 TEU in November 2018
06:09 Mitsubishi Shipbuilding holds christening ceremony for LPG carrier "LAUREL PRIME"

2018 December 13

18:43 Coal exports via Rosterminalugol hit 19-millionth tonne mark
18:28 Port of Kaliningrad throughput in Jan-Nov rose 4% to nearly 13 million tonnes
18:25 Tideway completes installation of longest AC offshore wind export cable at Hornsea One in the UK
17:49 Hapag-Lloyd to cancel calls at Port of Bremerhaven
17:25 Building of Johan Sverdrup Phase II begins
17:19 Port of Vyborg 11-month cargo volumes soar 24% to 1.72 million tonnes
17:13 Seabridge first in Belgium to receive the SCA certificate
17:08 Jan De Nul cleans up polluted beaches along the coast in southern France
17:07 Bunker fuel prices at Far Eastern ports close the week lower
17:00 Murmansk Region will improve water safety regulations – Marina Kovtun
16:47 Port of Vysotsk cargo volume in Jan-Nov rises 6% to 16.86 million tonnes