APM Terminals first quarter net profit surges 66pc to US$235 million
THE terminal operating unit of AP Moller-Maersk Group, APM Terminals posted a 66 per cent increase in first quarter net profit year on year to US$235 million. Saturday, 19.May.2012, 01:20 (GMT+3)
THE terminal operating unit of AP Moller-Maersk Group, APM Terminals posted a 66 per cent increase in first quarter net profit year on year to US$235 million.
First quarter results were positively affected by volume growth in West Africa and after-tax divestment gains of $73 million. The global container terminal market measured in TEU increased by 1.4 per cent from last year.
The number of containers handled by APM Terminals (measured in crane lifts weighted with APM Terminals' ownership interest) increased by 10 per cent from 7.8 million TEU in the first quarter of last year to 8.6 million TEU in the first three months of 2012. Excluding the impact of portfolio changes, volumes increased by five per cent.
"We are pleased with the stable progress - especially since this allows us to invest in locations where our customers need us to provide capacity," said APM Terminals CEO Kim Fejfer.
The quarter showed a varied regional performance, with West Africa and some terminals in Asia demonstrating very high growth rates, whereas volumes in most European terminals were below quarter 2011. Operations in some terminals in North Africa, Europe and the Middle East have been negatively affected by local political unrest or labour issues.
The inland activities continued to contribute positively to the financial performance. The Tariff Authority for Major Ports in India (TAMP) reduced the tariffs for Gateway Terminals India in Mumbai by 44 per cent in February 2012. The ruling is being contested in court due to the potential negative effect on the terminal's profitability.
Significant events during the first quarter include APM Terminals disposing of half of the 50 per cent interest stake in the Xiamen terminal in China with an after-tax gain of $21 million. Further to this, Maersk Equipment Service Company Inc USA, was divested in March 2012 with an after-tax gain of $48 million.
APM Terminals took control of the operations in the Skandia Container Terminal in Gothenburg, Sweden, effective January 4.
The concession agreement governing APM Terminals' Moin Container Terminal (TCM) has received final approval from the Costa Rican authorities. The 18-month implementation phase can now begin.