• 2021 March 11 12:03

    Maersk Product Tankers delivers record-high financial results in 2020

    An acceleration of the company’s strategy and strong markets in the first half of the year led to Maersk Product Tankers recording a significant increase in profits in 2020, according to the company's release.

    A combination of vessel transactions that ensure an optimal fleet composition, the ability to harness digital, commercial and technical solutions to enhance fleet performance, and rising freight rates, boosted earnings, turning the USD 92.4m net profit in 2019 into an USD 160.7m net profit in 2020. The company’s revenue decreased to USD 663.6 million (USD 727.7 million), mainly caused by a fall in freight rates during the second half of the year, while it delivered a positive free cash flow of USD 183.2 million (a negative free cash flow of USD 11.1 million).

    The product tanker market was a tale of two halves in 2020. In the first half of the year, demand for oil products collapsed. This coincided with OPEC releasing extra volumes on to the market, which caused oil prices to hit a historic low. This led to several tanker vessels being used as storage facilities, causing earnings to spike to new highs. The second half of the year saw lower freight rates and a growing tanker fleet, which caused a supply-demand imbalance. Maersk Product Tankers expects the market to remain subdued in the first half of 2021, but it can re-bound later in the year depending on the speed and effectiveness of the COVID-19 vaccine roll-out.

    Maersk Product Tankers continued working in strategic partnership with Maersk Tankers, which manages the fleet commercially and technically. Maersk Tankers’ scale with more than 230 vessels under management and significant investments into digital, commercial and technical shipping solutions enabled greater economic and environmental performance of the assets. Critical in this was the use of the digital solution Optimise by ZeroNorth. Through the use of complex algorithms, Optimise helps operators optimise bunker spend, which, in turn, cuts CO2 emissions and boost revenue. The solution was used across the fleet and it now has the commitment of 1,500 vessels in tramp shipping to use it.

    These solutions reduced Maersk Product Tankers fleet’s CO2 emissions by 3.3 per cent, giving a total reduction of 28.7 per cent between 2008 and 2020 (as measured on the Energy Efficiency Operational Indicator). This puts Maersk Product Tankers on course to achieve its target of a 30 per cent cut by 2021.

    The company completed a series of vessel transactions at attractive prices, including a sale-and-lease-back agreement on nine vessels. In total, 20 vessels were sold and two newbuildings entered the fleet. The ongoing newbuilding programme will deliver nine LR2s over the coming years.

    Lockdowns and restrictions implemented by governments to contain the pandemic made crew shifting exceedingly difficult and were an added cost. Despite this, Maersk Tankers’ technical management of the vessels reduced average daily running costs to USD 5,590 per day (USD 5,696 per day in 2019). This was achieved, among other things, through greater use of data and technology in vessel repair and maintenance.

    Financial highlights in 2020 – full-year results
     Net profit: USD 160.7m (USD 92.4m)
     Revenue: USD 663.6 million (USD 727.7 million)
     Cash flow: Positive free cash flow of USD 183.2 million (negative free cash flow of USD 11.1 million)
     Outstanding capital commitments: USD 301.8 million (USD 421.2 million)
     Vessels’ daily average running costs: USD 5,590 per day (USD 5,696)
     Maersk Product Tankers Annual Report 2020

    About Maersk Product Tankers

    Maersk Product Tankers is a leading player in the product tanker industry, owning more than 80 vessels, which are carrying 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.

2021 July 23

18:27 EBRD and Ukraine boost low-carbon hydrogen development
18:03 ROSATOM and GDK Baimskaya LLC sign agreement to jointly supply energy to Baimsky plant
17:58 Van Oord signs contract with the Spanish energy company Iberdrola for the Baltic Eagle offshore wind farm
17:50 Chantiers de l’Atlantique completes installation of EGCS on three MSC Cruises vessels
17:41 ROSATOM and Aeon Corporation agree to Arctic shipping cooperation
17:32 RWE, Shell, Gasunie and Equinor sign a declaration of intent on the AquaSector project
17:18 Rosatom and DP World sign Cooperation Agreement
16:55 RosGeo eyes exploration of solid mineral deposits in the Persian Gulf
16:32 Learn the latest global LNG trends with LNGcon 2022
16:30 ROSATOM and Moscow State University’s Marine Research Centre sign cooperation agreement on environmental impact assessment in Arctic
16:07 Rosatom expects transit cargo flow along NSR to reach 20-30 million tonnes per year by 2030
15:39 ROSATOM and Nornickel sign supplementary agreement on icebreaker accompaniment
15:01 Sea Port of Saint-Petersburg handled 4.1 million tonnes of cargo in H1’21, up 12% YoY
14:36 Recovery of investments in offshore geological exploration not expected by RosGeo before 2022
14:14 Wärtsilä to provide thrusters for two Chinese wind farm turbine installation vessels
13:40 RosGeo: Deposits in shallow waters and estuaries should be taken into account when developing Arctic resources
13:12 A deep sea mineral riser system reviewed by ABS in an industry first
12:48 Nornickel set to expand and upgrade Dudinka port
12:11 Maersk changes the logistics landscape in Bulgaria and launches intermodal weekly service connecting Burgas to Plovdiv and Sofia
12:09 Ningbo Containerized Freight Index rises in July 2021
11:43 Vietnamese Navy ships arrived in Vladivostok to participate in Russian Navy Day celebration
11:11 GTT receives orders for the tank design of two new LNG сarriers
11:07 Integrated drill of emergency response teams conducted at CPC Marine Terminal near Novorossiysk
10:45 Alexei Rakhmanov: USC saved nearly RUB 18 billion in 2021 through cost optimization
10:24 Baltic Dry Index as of July 22
10:06 Crude oil market sees downward price correction
09:48 Russian Maritime Register of Shipping supports the 4th International Conference “Development of Icebreaking and Support Fleet”
09:30 China ports container volume rises 15% in first half of 2021
09:27 Alexei Rakhmanov: USC is set to open up routes that do not depend on foreigners
09:09 Sea Port of Saint-Petersburg handles high-speed train intended for Uzbekistan Railways
08:40 MABUX: Global bunker prices may continue firm upward trend on Jul.23.

2021 July 22

19:00 Northern Sea Route cargo traffic rose by 2.59% to 17,047,282 tonnes YTD
18:35 Equinor Brasil Energia awarded a contract to Floatel Victory
18:05 Solstad Offshore ASA announces new contract for the CSV Normand Jarstein to DeepOcean AS
17:55 Manila Harbor Center aids PH Coast Guard’s substation project
17:25 Suek AG supramax vessel Kumpula to sail through Northeast Passage
17:05 US FMC establishes Ocean Carriers Audit Program
16:25 Survitec enhances lifeboat inspection solution to deliver savings and flexibility for ship operators
16:05 RINA and SWS mark a new era in Cruise shipbuilding in China
15:27 Multipurpose Reloading Complex in Ust-Luga handled 2.24 million tonnes of coal in H1’21, up 4% YoY
15:22 DBS partners maritime players and MPA to complete Singapore’s first live bunker delivery financing pilot with digital bunker delivery note
15:11 Two new hybrid LNG-electric ships join to the Brittany Ferries fleet
15:05 Second batch of oversize equipment for Amur GCC reloaded in De-Kastri
14:42 CMA CGM to launch a new Indian Ocean feeder service
13:21 DCT Gdańsk Welcomes New CEO – Charles Baker
13:20 Port of Rotterdam posts H1 2021 results
12:58 Seven entities interested in investing in Port Gdański Eksploatacja
12:03 Shipping industry announces international decarbonisation conference at COP26
11:03 Boskalis awarded contract for deepening the approach channel to harbor of Harwich, UK
10:29 Transport Canada issues new Ballast Water Regulations
10:24 Rosmorport completes repair dredging at Vostochny seaport
09:53 Crude oil market sees downward price correction
09:36 IAA PortNews opens registration for 4th International Conference “Development of Icebreaking and Support Fleet”
09:22 Baltic Dry Index as of July 21
08:31 MABUX: Global bunker prices may continue firm upward evolution on Jul 22

2021 July 21

18:30 MSC Cruises restart its activity in the Port of València
18:00 Agreement signed between Grimaldi and Armas Trasmediterranea
17:55 Stena RoRo orders its tenth E-Flexer RoPax ferry
17:51 “FLORIAN” Port Fire Brigade to take care of safety in the Port of Gdańsk
17:17 ESPO welcomes "Fit for 55”-package