• 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.




2019 February 21

18:33 AML’s MVP200 selected for new Swedish “RV Svea”
18:16 ​Shearwater GeoServices and TGS partner for major Brazil survey
18:03 NYK selected as a White 500 company for third consecutive year
17:55 Rosmorport to dredge 12.1 million cbm of material in 2019
17:34 Boskalis expands market position in marine survey through acquisition Horizon
17:29 GE to supply LM2500 gas turbine auxiliary equipment for Indian Navy’s P17A frigates
17:11 Hydrographic Company to get 15 new vessels by 2024
17:05 Rotterdam port innovation programme PortXL participants announced
17:03 H.H. Sheikh Theyab updated on ADNOC L&S strategy to become a global shipping champion
16:14 SCHOTTEL presents new shallow-water thruster SPJ 30 up to 150 kW
15:35 Forth Ports Group receives planning consent for new terminal at the Port of Tilbury
15:16 Algoma announces the Algoma Conveyor is headed for Canada
14:32 A.P. Moller - Maersk accelerates transformation and grows revenue in 2018
14:11 Teekay Tankers reports fourth quarter and annual 2018 results
13:46 Santos posts it 2018 net profit of $630 million
13:15 Gazprom Neft demonstrates solid growth across all key financial indicators in 2018
13:13 A.P. Moller - Maersk initiates demerger and separate listing of Maersk Drilling
12:49 ESPS Relampago’s crew carried out maritime training exercises with the Seychelles Coastguard
11:57 First meeting of Eastern Partnership LNG Network takes place in Warsaw
11:28 42 vessels escorted by icebreakers in eastern part of Gulf of Finland during 24 hours on February 20-21
11:03 The UK publishes draft UK MRV legislation following Brexit
10:39 Taganrog Sea Commercial Port spent USD 60,500 under its social programme in 2018
10:16 IMO treaties ratified by Guyana
09:54 Allocations of Taganrog Sea Commercial Port for its environmental programme in 2018 totaled USD 96,400
09:31 Brent Crude futures price is up 0.18% to $67.2, Light Sweet Crude – up 0.51% to $57.45
09:15 Baltic Dry Index is down to 622 points

2019 February 20

18:13 Klaipėdos nafta carried out the 10th operation of reloading LNG from a gas carrier to ground storage tanks
17:52 VNIIR-Progress St. Petersburg supplies electrical equipment for Atomflot icebreaker
17:28 Documents on concession model for Taman dry cargo area project to be submitted to RF Govt in March 2019
17:04 Cammell Laird stages ‘float-off’ for new £10m ferry for Red Funnel
16:46 VTMS, AIS and Pilotage Service on the Northern Sea Route to remain under Rosmorport’s control
16:25 NOVATEK eyes arranging LNG bunkering in Sabetta
16:04 Maersk enhances Asia-Europe network to further improve schedule reliability
15:43 Decision made on transfer of FSUE Hydrographic Company to Rosatom Corporation
15:21 Euronav sells LR1 Genmar Сompatriot
14:54 SIA Extron Baltic receives award for rapid growth in the Port of Riga
14:30 NOVATEK announces consolidated IFRS results for year ended 31 December 2018
14:02 COSCO SHIPPING Lines and Bolloré Transport & Logistics sign a MoU to develop new synergies
13:39 ABP partners with Grimsby-based Maritime Academy
13:15 Toll unveils new Australian ship
12:48 Increasing numbers of cruise ships making their maiden calls to Southampton
12:22 Transport Week 2019 welcomes Kalmar among its sponsors
12:01 First diesel-electric Damen Shoalbuster 3514 DP2, IMO Tier 3 ordered by Herman Sr
11:50 20 vessels escorted by icebreakers in eastern part of Gulf of Finland during 24 hours on February 19-20
11:33 DP World acquires leading European transportation and logistics provider P&O Ferries
11:09 Port of Oakland to get three new cranes
10:47 Brent Crude futures price is down 0.3% to $66.25, Light Sweet Crude – down 0.02% to $56.44
10:35 2nd Hydraulic Engineering Structures and Dredging Congress kicks off in Moscow
10:18 Baltic Dry Index is down to 635 points
10:00 IMO Secretary-General urges all aboard for GHG reduction
09:34 Baltiysky Zavod completed shaping ice belt of nuclear-powered icebreaker Ural of Project 22220
09:25 Keppel delivers jackup rig to Grupo R on sale and leaseback deal
09:15 FESCO new vessel starts working on a regular service among the ports of China and Far East of Russia

2019 February 19

18:03 San Vicente Terminal Internacional receives two state-of-the-art cranes to enhance operations
17:50 Throughput of port Kavkaz in Jan’2019 fell by 8% Y-o-Y to 1.82 million tonnes
17:26 Moody´s upgrades Hapag-Lloyd credit rating to B1
17:03 Jan De Nul's PDC and Bangladesh PPA to pick engineer services provider for Payra dredging project
16:29 TMA Logistics, CTU and VCL join forces to establish Amsterdam-Utrecht-Rotterdam-Corridor
16:21 NIBULON shipbuilders finish constructing a series of POSS-115 Project tugs
16:03 MOL conducts underwater drone demonstration test for vessel bottom inspection