• 2008 May 16 07:00

    A.P. Moeller-Maersk announces Q1 results

    Revenue (in USD) increased by 31%, mainly due to significantly higher oil prices as well as higher freight rates and volumes in the container trades. Net profit for the period was USD 1,050 million compared to USD 390 million in the same period 2007. The result for the oil and gas activities was considerably above that of the same period 2007, primarily due to on average 67% higher oil prices (Brent) and to the Group’s share of oil and gas production in the period being about 20% above that of the corresponding period 2007. Improved result in the container activities, partly due to 4% increased volumes and 5% higher rates (excluding bunker adjustment factor). The result for the period was negative, in part due to highly increased fuel costs and non-recurring costs related to the streamLINE initiatives.
    A result for tankers, offshore and other shipping activities somewhat above that of the same period 2007, primarily due to gains on sale of the car carrier activities to Hoegh Autoliners. In connection with this sale the A.P. Moller - Maersk Group acquired 37.5% of Hoegh Autoliners.
    Taxes increased significantly from USD 0.7 billion to USD 1.7 billion especially due to higher pre-tax earnings in the oil and gas activities.
    A USD exchange rate that, measured in DKK, on average was 13% lower than that of the corresponding period in 2007 with negative effect for the result in DKK.
    Outlook for 2008
    Outlook for 2008 is unchanged from the announcement of 13 March 2008:
    Revenue in the order of USD 60 billion (USD 51 billion), corresponding to about DKK 300 billion (DKK 279 billion) at a DKK/USD exchange rate of 5.00.
    Net profit in the order of USD 3.6-4 billion (USD 3.4 billion), corresponding to about DKK 18-20 billion (DKK 18.7 billion) at a DKK/USD exchange rate of 5.00.
    A possible sale of shares in non-strategic assets, as mentioned in the Annual Report 2007, is still being contemplated. If such sale is completed in 2008 it may improve the expected net result mentioned above in the order of USD 800 million.
    The outlook for 2008 is subject to significant uncertainty not least due to the development in the world economy. Specific uncertainties relate to development in container freight rates, transported volumes, USD exchange rate and oil prices.
    Container shipping and related activities
    Maersk Line and Safmarine transported approx. 1.7 million FFE (Forty-Foot Equivalent container units) – an increase of 4% compared to the same period 2007. On the trades between Asia and Europe volumes grew by 7%, on the trades between the Far East and North America volumes were 18% lower, and on the other trades volumes grew on average by 11%.
    The average freight rates were, including the bunker adjustment factor, 13% above that of the corresponding period 2007. Excluding the bunker adjustment factor the increase was 5%. On the trades from Asia to Europe, which are the most significant for Maersk Line, considerable rate increases have been realised compared to those in the first quarter of 2007. However, in 2008 tonnage supply has increased on these trades putting some pressure on the rates.
    Fuel prices increased further and were on average 65% above those of the same period 2007. The negative effect on the result for the period was significant despite considerable initiatives to reduce fuel consumption and to increase fuel surcharges from customers. Total unit costs (including depreciation) were 8% above those of the corresponding period 2007, affected by higher fuel prices and the lower USD exchange rate.
    The streamLINE process is proceeding according to plan and the organisational changes are by and large finalised. The number of positions in Maersk Line is reduced by a little more than 3,000 or approx. 15%. Other streamLINE initiatives continue with focus on customer satisfaction, increased capacity utilisation and cost efficiency.
    Net result for the container activities was negative with USD 47 million – after USD 58 million non-recurring costs regarding streamLINE and after gains on sale of ships etc. USD 141 million – compared to a negative result of USD 198 million in the corresponding period 2007 after gains on sale of ships etc. USD 58 million.
    In the period to 31 March 2008, Maersk Line took delivery of nine container vessels and sold three, one of which chartered back for a longer period. Safmarine took delivery of one container vessel.
    APM Terminals
    From 1 January 2008, APM Terminals is reported as a separate segment and thus not included in "Container shipping and related activities".
    Revenue in APM Terminals increased by 27% measured in USD compared with that in the corresponding period 2007. The activity measured by the number of crane lifts, weighted by ownership share increased by 10%. In North America volumes were approx. 2% lower and on the other markets approx. 13% higher than in the corresponding period 2007. Revenue was additionally positively affected by certain rate increases and the exchange rate development.
    Net profit was above that of the corresponding period 2007.
    Tankers, offshore and other shipping activities
    Maersk Tankers experienced a weak winter market. New tonnage entering the market and the mild winter resulted in generally lower rates for tankers compared to the corresponding period 2007. The net result was below that of the same period 2007 both before and after gains on sale of ships.
    In the period, Maersk Tankers took delivery of three product tankers, one crude oil tanker and one LNG vessel, and sold one crude oil tanker.
    All Maersk Contractors' drilling rigs and production units were employed, which were not the case in the corresponding period 2007, and the average rate level was higher. The net result was somewhat above that of the same period 2007.
    In the period, Maersk Contractors took delivery of M?RSK RESILIENT – a 350 foot jack-up rig. The rig started on contract in April 2008. The conversion of the jack-up rig M?RSK INSPIRER to a combined drilling and production platform was completed in February 2008, after which the unit started on contract. Additional three rigs and one FPSO are expected to be delivered in 2008. Due to the very active offshore market some delay must be expected.
    For Maersk Supply Service the rate level was somewhat above that of the same period 2007, and the result before gains on sale of ships was also somewhat above. Including gains on sale the result was at the same level.
    The Svitzer Group's revenue was significantly above that of the same period 2007 due to the acquisition of Adsteam Marine Limited effective from 15 March 2007.
    The result for the period was slightly below that of the corresponding period 2007 mainly due to increased financial costs.
    Gain on sale of the car carrier activities to Hoegh Autoliners is included in the period's result with USD 206 million. In connection with this sale the A.P. Moller - Maersk Group acquired 37.5% of Hoegh Autoliners, which hereafter is included as an associated company.
    For the total segment Tankers, offshore and other shipping activities the result was somewhat above that of the corresponding period 2007.
    Oil and gas activities
    The Group’s share of oil and gas production in the period was about 20% above that of the corresponding period 2007, positively affected by a larger share of the production in Qatar and negatively affected by lower production in Denmark and in Great Britain.
    As mentioned in the Annual Report 2007, production from the Janice field in Great Britain is closed. The field is expected to start producing during the second quarter of 2008.
    The average oil prices (Brent) for the period were with USD 97 per barrel 67% above those of the corresponding period 2007.
    The period's depreciation and amortisation were at the same level of those in the corresponding period 2007. The period's tax etc. was with USD 1.6 billion significantly above that of the same period 2007 and the net profit also significantly above.
    The development of the Qatar fields is proceeding according to plan.
    Retail activity
    The Dansk Supermarked Group continued its growth in revenue. The result before financial items was at the level of that in the corresponding period 2007.
    The net result was below that of the same period 2007, negatively affected by market value adjustment of securities.
    Shipyards, other industrial activities, interest in Danske Bank A/S, etc.
    The share of result from Danske Bank A/S was somewhat below that of the corresponding period 2007.
    In the period, the Odense Steel Shipyard Group realised a loss, however somewhat lower than that of the same period 2007.
    Oil price sensitivity
    On page 41 in the Annual Report 2007 it is stated that the Group's result, all other things being equal, would be negatively affected by an increase in oil prices. Due to the fact that Maersk Line as mentioned has been able to recover a larger part of the increased fuel costs from customers, initiatives to reduce fuel consumption on the container trades, and the development in the price difference between crude oil and bunkers oil (crack), the Group's sensitivity to oil prices has changed, hence the result for the Group for the remainder of 2008, all other things being equal, and before effect of oil hedge contracts will now be unaffected or slightly positively affected by an increase in oil prices.


2024 March 29

15:10 MOL announces restructuring measures
14:45 Drewry predicts impact on container calls at US East Coast ports after the collapse of the Francis Scott Key Bridge
14:25 Chevron’s first hybrid electric fueling barge arrives in Singapore
13:40 HD KSOE and Infineon sign MoU to develop ship electrification technology
13:29 NYK and JMU formulate method for evaluating ship performance in actual seas
12:59 HD Hyundai wins US$463 mln warship order in Peru
12:09 COSCO SHIPPING Ports throughput up by 4.4% YoY to 135,808,554 TEU in 2023
11:46 The "Ane Maersk" calls at the Eurogate container terminal in Hamburg for the first time on its maiden voyage from Asia to Europe
11:20 Sallaum Lines and Fujian Mawei Shipbuilding commence construction of Ocean Class vessels
10:43 Oasis Marine develops solutions for offshore hydrogen bunkering
10:03 Petrofac secures contract extension with ONEgas West in the UK market

2024 March 28

18:05 Jan De Nul, ENGIE and Equans launch a pilot project centred around the use of Vanadium Redox Flow batteries
17:35 Latvian port equipment manufacturer Bleste introduces new bulk handling ‘bucket’
17:05 Investors upgrade Navios Maritime Partners
16:25 DEME reports 22% increase in the orderbook and a record-high turnover of 3.3 billion euros in 2023
16:14 MABUX: Bunker Outlook, Week 13, 2024
15:41 AD Ports Group announced the opening of Saadiyat Marina & Ferry Terminal and Rabdan Marina
15:11 Sydney invests $11.5 million in two new operational vessels designed by Incat Crowther
14:55 China’s Jinzhao wins Peru $405m port construction contract
14:13 APM Terminals Moín handled six million TEU
13:48 ClassNK grants Innovation Endorsements for Products & Solutions to two innovative initiatives by MOL
13:37 Konecranes launches its flagship Konecranes X-series industrial crane
12:53 United European Car Carriers UECC spearheads collaboration with industry leaders to advance CNSL as a sustainable marine fuel
12:26 Ocean Network Express announces Transpacific service
11:48 Yang Ming announces 2025 Trans-Pacific service network
11:24 Fincantieri signs contract for the supply of two PPAs to Indonesia
10:42 Maersk transported more than 660,000 TEU using clean fuel in 2023
10:23 Documentation delays push industry costs to $3bn
09:48 PONANT and FARWIND Energy partner to develop green hydrogen refueling solutions

2024 March 27

18:22 Bureau Veritas awards world’s first prototype certification for SolarDuck’s floating offshore solar solution
17:58 The recently converted Allseas's shallow water pipelay barge starts preparations for its first commercial project
17:38 The Port of Rotterdam calls on the European Commission and Parliament to focus on actively promoting green energy
15:23 SEFE to become sole shareholder of WIGA
14:53 Ocean Installer secures yet another SLM contract with Equinor
14:23 Cadeler signs offshore wind turbine installation contract for the vessel Wind Scylla
13:42 Carnival Cruise Line orders 5th Excel-class cruise ship
13:11 Maersk and MSC overcharging cargo owners for EU ETS, says T&E
12:52 The Port Authority of Valencia launches the ZAL project in the Port of Valencia
12:11 Clarkson Port Services and Peak Group collaborate to deliver Port Agency services across the North Sea
11:42 Wan Hai Lines holds ship naming ceremony for new vessels
11:24 Consolidated shipping lines EBIT loss was $1.44 billion in Q4 2023: Sea-Intelligence
10:49 Seaspan Shipyards receives long-term contracts for the pre-construction work of the the Canadian Coast Guard's first six multi-mission vessels
10:14 Woodside completes sale of 10% scarborough interest

2024 March 26

18:02 COSCO Shipping Lines introduces new Americas service
17:30 Davie awarded first contract for design of icebreaker fleet under Canada’s National Shipbuilding Strategy
17:04 Sanctions complicate Arctic LNG ship sales, Hanwha Ocean says - Bloomberg
16:57 Terntank places an order for 1+1 additional wind/ methanol-ready hybrid tanker
16:28 BW LNG completes acquisition of two TFDE vessels from Stena Bulk
15:50 Hanwha Ocean develops VR-based special vehicle simulator
15:20 TotalEnergies and SINOPEC join forces to produce sustainable jet fuel at a SINOPEC's refinery
14:52 Wärtsilä Lifecycle Agreement to guarantee operational reliability of new wind farm installation vessel
14:23 Hudong-Zhonghua launches two LNG carriers
13:51 Cargo ship hits Baltimore’s Key Bridge
13:12 Final sanctioned tanker with Russian Sokol oil to reach China port - Reuters
12:42 Adani Ports acquires 95% of Odisha's Gopalpur Port from SP Group for $162 million
12:21 IHI and Yara Clean Ammonia agree to jointly assess clean ammonia business collaboration
11:41 Yara Clean Ammonia and Azane granted safety permit to build world's first low emission ammonia bunkering terminal
11:16 Wartsila and Royal Caribbean Group celebrate 15 years of collaboration on digital transformation
10:46 A global carbon tax on shipping is coming, says ABS Chairman and CEO
10:21 Eni, Fincantieri and RINA establish partnership for maritime transport decarbonization

2024 March 25

18:07 The Maritime and Port Authority of Singapore continues to investigate reports of oil spills off the port of Tuas
17:31 “K” Line, NIPPON HAKUYO and OPT Gate sign an agreement for a new fire detection system for car carriers
17:07 Greek merchant fleet recorded slight decline in January 2024
16:47 Hanwha Ocean Plans to develop green technology and naval ships
16:25 U-Ming Singapore and ITOCHU sign milestone MoU for the joint development of ammonia dual-fuel and de-carbonized vessels
15:34 Svitzer targets methanol-fuelled MAN 175DF-M engine for tug application
15:04 Wallenius Wilhelmsen signs contracts for four 9,300 CEU vessels with China Merchants Jinling Shipyard
14:40 Taiwan International Port to upgrade terminal facility at Kaohsiung
13:59 Сruise ship Carnival Freedom catches fire near Bahamas
12:59 Hanwha Ocean wins 2.4 tln-won order for 8 LNG ships