Maersk posts Q2 net profit of $227m
A P Moller-Maersk raised its forecast for full-year net profit as the Danish group's container shipping arm swung back into the black to the tune of US$227 million in the second quarter on a rise in freight rates, partially offsetting worse performances at its oil and terminals units which left net profit 19 percent lower.
Maersk has raised its 2012 net profit expectation to "slightly above the result for 2011". It had previously forecast its bottom line would be slightly lower than last year, reported Dow Jones Newswires.
The company attributed its more upbeat view to a marked improvement in shipping rates, which helped the wholly-owned Maersk Line, the world's largest container-shipping company, swing to second-quarter net profit of $227 million, from a year-earlier net loss of $95 million.
“We delivered a fairly satisfactory result for the second quarter, and we are on the right track. Container rates have improved, Maersk Line is back in the black and our other core growth businesses are executing well on strategy.
“We can still improve and will continue our strong focus on profitability to deliver a satisfactory full-year result. We will also maintain our investments in long-term growth, not least in developing our many oil discoveries towards production,” said group CEO Nils Andersen.
The group delivered a profit of $1 billion compared to $1.6 billion a year ago and a return on invested capital (ROIC) of 8.8 percent compared to the previous year’s 14 percent for the second quarter.
Maersk Line now expects "a modest positive result in 2012," compared with previously a "negative to neutral result," the company said.
Global demand for container capacity is seen to rise by four percent in 2012, underpinning improved shipping rates, Maersk said.
Still, the Danish group cautioned that its outlook is subject to "considerable uncertainty, not least due to developments in the global economy" which will have an impact on the volume of goods carried by Maersk's container ships.
APM Terminals’ profit for the period was $160 million compared to $162 million a year ago. Throughput increased by seven percent and by five percent on a like-for-like basis to 9.1 million TEUs compared to the previous year’s 8.4 million TEUs.
The West Africa region and some terminals in Asia saw double digit growth rates, whereas most European terminals experienced declining throughput in the second quarter.
Operations in terminals affected by local political unrest or labour issues improved during the quarter. APM Terminals took further initiatives to expand the portfolio with terminals and projects in China and Mexico. An unsolicited proposal to operate all pf Port of Virginia’s facilities in Hampton Roads, US, was submitted.