AP MOLLER MAERSK group, owner of the world's biggest container shipping line, has posted an 11 per cent decline in second quarter profit to US$856 million, drawn on revenues of $14.1 billion, down eight per cent.
The group attributed lower revenue to the decline in freight rates, partly offset by higher container volumes.
Maersk Line, the group's container shipping arm and APM Terminals, its port operating unit, did well, but overall results were pulled down by weak performances by other units such as Maersk Oil, Maersk Tankers and Damco, the forwarding arm.
Maersk Line did extremely well, declaring a 93.3 per cent second quarter year-on-year profit increase to $439 million.
"Maersk Line has made strong and consistent progress and is now an industry leader in terms of profitability," said group CEO Nils Andersen.
"The significant improvement in financial performance was achieved through lower costs. The cost decrease was mostly driven by vessel network efficiencies and lower bunker prices," said the company statement accompanying the results.
APM Terminals quarterly profit increased 11.8 per cent to $179 million year on year. "Volumes were at the same level as last year, with most terminals in Europe and North America recording decreased volumes, offset by continued positive developments in high growth markets," the statement said.
Maersk Line has a more positive outlook that before. "Global demand for seaborne containers is expected to increase two to three per cent in 2013, lower on the Asia-Europe trades, but supported by higher growth for imports to high growth markets," the statement said.
"APM Terminals maintains an expected result above 2012 ($701 million) supported by volumes from new terminals and improving productivity in existing facilities," said the group statement.
"Increased profit was achieved across all businesses except Maersk Oil and Damco as well as Maersk Tankers, which were negatively impacted by impairments and provisions of a $280 million related to VLCC [Very Large Crude Carriers]," said the statement.
"Significant improvements were seen in Maersk Line and Maersk Drilling whereas Maersk Oil's profit was reduced due to declining entitlement production and lower oil prices while maintaining substantial exploration costs to expand the oil production portfolio," the statement said.
WORLD SHIPPING
16 August 2013 - 20:59
Maersk group profit off 11pc, but Maersk Line up 93pc to US$439 million
AP MOLLER MAERSK group, owner of the world's biggest container shipping line, has posted an 11 per cent decline in second quarter profit to US$856 million, drawn on revenues of $14.1 billion, down eight per cent.
WORLD SHIPPING
16 August 2013 - 20:59
Maersk group profit off 11pc, but Maersk Line up 93pc to US$439 million
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