• 2020 March 25 16:35

    Maersk Product Tankers delivers improved financial results and makes strategic progress in 2019

    Maersk Product Tankers reported improved financial results in 2019, with an increase in revenue to USD 727.7 million (USD 647 million) and a profit before tax of USD 91.4 million (a loss of USD 35 million).
     
    Freight markets improved across all tanker segments, especially in the fourth quarter, and in line with Maersk Product Tankers’ expectations. The primary drivers were a continued growth in demand for oil, increased transportation in preparation for the new sulphur regulation coming into force in 2020 and sanctions limiting the available supply of vessels.

    CEO Christian M. Ingerslev said: “2019 was a positive year for Maersk Product Tankers. We improved our financial results and delivered a solid strategic performance. This included decisive action to increase the use of digitisation to optimise fleet performance and reduce CO2 emissions; turn a profit by selling vessels when the market offered attractive financial returns; and reduce vessels’ average daily running costs. We are on a positive trajectory for 2020 and our priorities are clear. We are cementing our financial position, continuing to deliver our strategy, and pushing the industry to greater sustainability, digitisation and profitability in our strategic partnership with Maersk Tankers."

    New digital measures were taken during the year to reduce CO2 emissions and increase earnings. The software product SimBunker was used on the fleet of vessels to reduce bunker spend. The initial use generated healthy earnings and, due to the software product’s significant potential, the fleet will continue to use it. Furthermore, testing of SimTanker began on the LR2 vessels during the fourth quarter, providing charterers with a data-driven trade signal to support commercial decision-making on optimal vessel positioning in the highly cyclical tanker market.

    CO2 emissions from the fleet were reduced by 5.4 percentage points, bringing the total reduction to 25.4% (2008-2019), through commercial and technical improvements. Work will continue to reach the targets of reducing CO2 emissions by 30% towards the end of 2021 and 45% by 2030 (compared to a 2008 baseline).

    Maersk Product Tankers’ financial flexibility and position was strengthened through the sale of 12 vessels, and a sale and leaseback agreement for four MR vessels, supporting the ability to invest when market prices are attractive and lock in attractive returns for shareholders.

    The company took delivery of four MR newbuildings. Furthermore, the order of the last four of 10 LR2 newbuildings was confirmed at an attractive price, increasing outstanding capital commitments to USD 421.2 million (USD 384.4 million).

    The vessels’ average daily running costs were reduced to USD 5,696 per day (USD 6,055 per day) through greater cost control, optimised procurement agreements and technological efficiencies.

    The market outlook for 2020

    While markets have benefitted from greater tonne-miles demand and a slow growth in operational vessel capacity in the early part of 2020, the outlook for the full year is uncertain. The outbreak and spread of coronavirus (COVID-19) and countries’ containment measures have led to global reductions in transport, industrial and commercial activity. This has caused a decline in the demand for oil and could eventually affect product tanker markets and freight rates.

    Financial highlights in 2019 – full-year results
     Revenue: USD 727.7 million (USD 647 million)
     Profit before tax: USD 91.4 million (a loss of USD 35 million)
     Outstanding capital commitments: USD 421.2 million (USD 384.4 million)
     Vessels’ daily average running costs: USD 5,696 per day (USD 6,055)

    About Maersk Product Tankers

    Maersk Product Tankers is a leading company in the product tanker industry, owning 84 vessels, which carry refined oil products worldwide for customers. The company is owned by A.P. Møller Holding A/S and Mitsui & Co. Ltd., and has its headquarters in Copenhagen, Denmark.




2020 September 23

18:15 HMM opens Fleet Control Centre
17:35 Stena develops a solution to use recycled batteries in charging stations at port
17:05 Philippine Ports Authority COVID-19 Molecular Testing Center for seafarers now operational
16:42 British Ports responds to reasonable worst-case scenario Brexit assumptions
16:17 Vestdavit wins contract to supply six Australian Navy patrol boats
16:03 ABB powers P&O super-ferries towards new sustainable transport era
15:43 Royal Niestern Sander orders SCHOTTEL thrusters for world’s first shallow-draught ice-breaking walk-to-work vessel
15:25 FESCO’s Board of Directors elected new Management Board
15:03 Kalmar’s fuel-efficient terminal tractor solutions selected by Yilport for fleet expansion at Puerto Bolívar and Gävle container terminals
14:47 RF Government to revise comprehensive plan for upgrading and expanding core infrastructure
14:30 U.S. Coast Guard awards four more fast response cutters to Bollinger Shipyards
14:01 ESPO expresses commitment of European ports to play their part in helping shipping sector decarbonise
13:28 Travelling by ferry between Finland and Sweden is now permitted without restrictions
13:19 Damen delivers ASD Tug 2810 to Thomas Service Maritimes
13:02 Van Oord’s Deep Dig-It trencher buries cables to 5,5 metres depth for offshore grid connection
12:44 Nakhodka Shipyard launched two self-propelled freight/passenger barges ordered by Kamchatka Transport Ministry
12:15 Construction of LNG transshipment facility in Kamchatka put under special control of RF Government
12:01 CMA CGM announces FAK rates from Asia to North Africa and to the Mediterranean
11:53 Maersk partners with IB Cargo to offer tailored logistics solutions for IKEA Supply AG in Romania
11:09 Konecranes wins Automation Service Contract in Indonesia
10:51 Bunker prices increase in the Port of Saint-Petersburg, Russia (graph)
10:32 IAA PortNews offers photos from farewell ceremony for Project 22220 icebreaker Arktika leaving for Murmansk
10:13 BlueWater Reporting: Asia-South America trades sees high demand, equipment shortages
10:00 RF Government approves new NSR navigation rules
09:41 Oil prices decrease amid information about growing US reserves
09:29 Maritime Safety Committee adopts resolution on Recommended action to facilitate ship crew change
09:26 Baltic Dry Index as of September 22
09:12 MABUX: Bunker market this morning, Sept 23
08:48 MPA and SMI launched a joint call for proposals on the electrification of harbourcraft in the port of Singapore

2020 September 22

18:24 FESCO launches new maritime service from ports of China and USA to Chukotka
18:06 Aker Solutions wins electrification work for Lundin Energy Norway
17:49 Onezhsky Shipyard launches yet another self-propelled hopper barge of Project NV-600
17:36 DNV GL – Maritime releases the fourth edition of its Maritime Forecast to 2050
17:15 KNUD E. HANSEN introduces new design of icebreaking expedition cruise vessel
16:56 Vyborg Shipyard lays down processing trawler of KMT02.03 design
16:35 "NextGEN" shipping decarbonization concept mooted for green and efficient navigation
16:19 USC and KOMEA create Russia-Korea shipbuilding and ship equipment cluster
16:05 Hopper Dredger First to Sail 2,000 Hours on 100% Sustainable Marine Biofuel
15:34 Boudewijn Siemons appointed as new Port Authority COO
15:10 The largest LNG-powered container ship joins CMA CGM Group's fleet
14:58 Lead nuclear-powered icebreaker of Project 22220, the Arktika, heads out for Murmansk
14:23 Release of containers at Port of Antwerp will be digitalized
14:17 Gazprombank to loan EUR 522 for construction of floating LNG storage units
13:22 Konecranes to start cooperation negotiations in Germany and Finland in its Industrial Equipment business area
13:00 Ships of RF Navy’s Black Sea Fleet participated in Kavkaz-2020
12:38 Bunker market sees mixed price movements in the Far East ports of Russia (graph)
12:15 Dogger Bank wind farm places record-breaking turbine order boosting local jobs
11:49 BIMCO adopts the industry’s first ship sale and leaseback standard
11:46 Operation of Novosibirsk gateway completed in navigation season of 2020
11:20 Rosmorport prepares tender documentation to continue construction of international marine terminal in Pionersky
10:33 IAA PortNews’ webinar “All Ferries. Caspian Basin” scheduled for 30 September 2020
10:09 Port Houston container volumes down 4% to 248,630 TEUs in August 2020
09:55 New gas tanker form paves the way for revision of ASBATANKVOY
09:31 Oil prices are recovering
09:22 Keppel O&M secures two contracts worth approximately $200 million
09:14 Baltic Dry Index as of September 21
08:38 MABUX: Bunker market this morning, Sept 22

2020 September 21

18:27 CMA CGM announces new PSS, FAK and GRR from Asia to North Europe
18:07 IUMI reports that marine cargo insurance market is “improving amid significant change”
17:43 BIMCO adopts the industry’s first ship sale and leaseback standard