• Home
  • News
  • A.P. Moller - Maersk improves underlying profit and grows revenue in first half of the year
  • 2017 August 16 11:08

    A.P. Moller - Maersk improves underlying profit and grows revenue in first half of the year

    In Q2, the revenue of A. P. Moller - Maersk grew by 8.4% to USD 9.6bn year on year, mainly due to higher freight rates in Maersk Line, the company announces in its press release.

    The underlying profit in Q2 improved from USD 134m to USD 389m with Maersk Line contributing with an underlying profit of USD 327m. As a result of post-tax impairments of USD 732m related to Maersk Tankers and APM Terminals, the reported result was a loss of USD 264m.

    The performance of A.P. Moller - Maersk in Q2 was mainly driven by a profitable Maersk Line due to continued recovery in the container market and focus on restoration of profitability. Full-year guidance is reiterated for 2017, despite an expected negative financial impact of USD 200–300m in Q3 from the recent cyber-attack.

    Transport & Logistics reported a consolidated revenue of USD 7.7bn, which was an increase of 15% compared to same quarter last year, and an underlying profit of USD 442m which was improved significantly, in large part driven by higher container freight rates. Energy delivered an underlying profit of USD 182m in Q2, with Maersk Oil as the main contributor.


    Transport & Logistics is progressing towards operating as one integrated division, and delivering the expected synergies estimated to create a ROIC improvement of two percentage points by the end of 2019. Maersk Line's volume growth of approximately 7–8% (equity weighted) at APM Terminals and the stronger results reported by Maersk Container Industry are examples of those synergies.

    The announced acquisition of Hamburg Süd is progressing as planned. The transaction remains subject to regulatory approval, with an expected closing in Q4 2017.

    The announced agreement to divest Mercosul Line will facilitate the authority approval process in Brazil.

    Maersk Line reported a profit of USD 339m (loss of USD 151m) with a positive ROIC of 6.7% (negative 3.0%). The underlying result was a profit of USD 327m (loss of USD 139m). Market fundamentals continued to improve in Q2 as demand growth of 4% outgrew nominal supply growth of 1.4%. The improvement in market fundamentals in past quarters has started to reflect in the freight rate, which increased 22% compared to Q2 2016 and 7.6% compared to Q1 2017. Freight rates increased by 36% on East-West trades and 17% on North-South trades. Transported volumes increased by 1.7% compared to Q2 2016. Volume grew on headhaul by 5.2%, however, offset by a decrease on backhaul by 5.6% as backhaul cargo was less attractive on some trades.

    APM Terminals reported a loss of USD 100m profit of USD 112m). The result was impacted by impairments of USD 250m (USD 8m) in a few commercially challenged terminals, partially offset by divestment gain of USD 34m. The underlying profit of USD 98m (USD 109m) was negatively impacted by exchange rates and lower rates.

    Damco reported a break-even result (profit of USD 10m) with a ROIC of 1.0% (18.5%). The underlying result was at break-even (profit of USD 10m), negatively impacted by increased product investments and lower ocean margins, positively offset mainly by supply chain management margins, air freight volumes growth and productivity improvements.

    Svitzer reported a profit of USD 19m (USD 24m) and a ROIC of 5.8% (7.8%), impacted by USD 12m impairment on 11 idle vessels marketed for sale due to fleet optimisation and by USD 6m impairment on investment in Ardent, the 50% owned salvage company. The underlying profit amounted to USD 33m (USD 23m), due to a USD 10m increase in deferred tax asset.

    Maersk Container Industry reported a profit of USD 15m (loss of USD 21m) and a positive ROIC of 18.0% (negative 19.6%). The underlying profit was USD 15m (loss of USD 21m), positively impacted by higher volumes, increased efficiencies and higher market prices for dry containers.


    Energy is progressing as planned on finding structural solutions for its businesses before the end of 2018.

    With an 8.7% higher oil price of USD 50 per barrel vs. USD 46 per barrel in Q2 2016, Maersk Oil delivered an underlying profit of USD 184m (USD 130m). The result was also positive impacted by lower costs and one-off income totalling of USD 66m related to tax and provisions. The result was negatively impacted by lower entitlement production primarily in Qatar, where cost reduction, unplanned shutdowns and the higher oil price led to fewer barrels for cost recovery, and lower year-on-year production from mature assets in the UK. The exit from Qatar by mid-July progressed as planned. The economic finalisation of the exit is still subject to review; however, Maersk Oil does not expect any adverse impact from this.

    Maersk Drilling delivered a profit of USD 28m (USD 164m) and a ROIC of 1.7% (8.3%) reflecting that ten rigs were fully or partly idle during the quarter, and that old contracts at higher day rates have expired. The result was furthermore impacted negatively by temporary downtime on two rigs during the quarter. The result was positively impacted by cost reductions.

    Maersk Supply Service reported a loss of USD 10m (loss of USD 106m) and a ROIC of negative 5.4% (negative 24.0%). The result for Q2 2016 was negatively impacted by an impairment of USD 97m. The underlying loss was USD 11m (loss of USD 8m), due to the overcapacity in the global offshore industry. Despite the subdued market outlook, Maersk Supply Service is making good progress with its newly launched integrated solutions strategy adding another contract. Maersk Supply Service will project manage the complete towing, mooring installation and hook up service scopes for Maersk Oil’s Culzean project in the British sector of the North Sea.

    Maersk Tankers reported a loss of USD 483m profit of USD 28m). The result was negatively impacted by impairments of USD 464m (USD 0m) due to an expected continuation of the lower asset valuations. The underlying loss was USD 17m (profit of USD 26m), negatively impacted by declining spot market rates, which was the main driver for Maersk Tankers’ average Time Charter Equivalent (TCE) earnings declining by 27%. Maersk Tankers continues their digitisation work to optimise vessel positioning.


    A.P. Moller - Maersk's expectation of an underlying profit above 2016 (USD 711m) is unchanged despite expected negative impact from the June cyber-attack. Gross capital expenditure for 2017 is still expected to be USD 5.5-6.5bn (USD 5.0bn).

    The guidance for 2017 excludes the acquisition of Hamburg Süd.

    Transport & Logistics reiterates the expectation of an underlying profit above USD 1bn, despite expected negative result impact from the June cyber-attack estimated at a level of USD 200-300m, of which the majority relates to lost revenue in July. The vast majority of the impact of the cyber- attack was in Maersk Line.

    Maersk Line reiterates the expectation of an improvement in excess of USD 1bn in underlying profit compared to 2016 (loss of USD 384m) mainly due to improvements in freight rates and partly increasing volumes. Global demand for seaborne container transportation is still expected to increase 2-4%, but in the upper end of the range.

    The remaining businesses (APM Terminals, Damco, Svitzer and Maersk Container Industry) in Transport & Logistics still expect an underlying profit around 2016 (USD 500m).

    Energy maintains an expectation of an underlying profit around USD 0.5bn, with Maersk Oil being the main contributor.

    The entitlement production is still expected at a level of 215,000225,000 boepd (313,000 boepd) for the full-year and around 150,000-160,000 boepd for the second half of the year after exit from Qatar mid-July. Exploration costs in Maersk Oil are now expected to be below the 2016 level (USD 223m).

    Net financial expenses for A.P. Moller - Maersk are still expected around USD 0.5bn.

2021 December 7

18:15 Ernst Russ AG to acquire further shares in a Fleet Holding Company
17:59 Kuzey Star Shipyard holds steel cutting ceremony for Atomflot’s new floating dock
17:36 Stena Line expands and launches new route between Stockholm Norvik and Hanko
17:15 Boskalis consortium secures EUR 24 million research grant to advance emission-free shipping
16:45 New report highlights regional economic importance of Ports of Stockholm
16:33 LAS Admiral Panteleev of RF Navy’s Pacific Fleet started transition to Vladivostok from Indonesia after participation in ARNEX-2021
16:15 Angola starts CLOV Phase 2 project
15:50 Rosneft signed contract with Indian Oil for supplying up to 2 mln tons of crude oil to India
15:45 Strategic Marine wins additional order for new 42m Fast Crew Boat from Centus Marine
15:27 Ships of RF Navy and Egypt Navy start naval phase of Bridge of Friendship 2021 joint exercise
15:03 Wärtsilä partners with Microsoft to strengthen their Edge platform and industrialise Marine IoT
14:41 NOVATEK and RWE sign MOU on decarbonization and LNG
14:23 ABS grants Alfa Laval the marine industry’s first approval in principle for firing boilers with methanol
14:08 Nonius Engineering supports International Congress “Hydraulic Engineering Structures and Dredging” as its Sponsor
13:50 Cox Marine collaborates with clean maritime consortium to demonstrate world-first diesel-hydrogen outboard
13:22 The leading Russian supertrawler for the Russian Fishery Company has successfully inclined
12:36 Throughput of Rostov-on-Don port in 11M’2021 fell by 15%, year-on-year
12:14 Stena Line to open new daily route to Finland
11:49 Russia joins the Nairobi International Convention on the Removal of Wrecks
11:12 Exports of Sibanthracite Group to India in 2021 to total 3.5 million tonnes of coal and anthracite
11:00 Long Beach and Los Angeles keep ‘Container Dwell Fee’ on hold until Dec. 13
10:51 DSV launches Green Logistics to accelerate the green transition of the industry
10:47 Throughput of Taganrog port in 11M’2021 fell by 2% Y-o-Y
10:24 Average spot market price for Russian M100 product fell to RUB 25,252 pmt
10:06 Flag-raising ceremony held on Norvezhskoye More trawler, first serial factory ship of KMT01 design
09:45 MABUX: Global bunker indexes to turn to firm upward trend on Dec. 07
09:28 Baltic Dry Index as of December 3
09:13 Crude oil prices continue rising

2021 December 6

18:37 The Port of Bergen changes the name of the Hurtigruten terminal
18:22 Preliminary results of Volga Basin cargo traffic – 41.39 million tonnes
18:14 Equinor invests in battery storage company
17:55 ENGIE and Masdar form US$5 billion strategic alliance to drive UAE’s green hydrogen economy
17:38 Moody’s upgrades Global Ports’ rating to Ba1 with stable outlook
17:16 Solstad Offshore announces long-term contracts in Brazil
16:44 Port of HaminaKotka cargo turnover in 11M’2021 fell by 1.5%
16:20 TezMedz and Tabiyat.pk signs contract with Maersk for integrated cold chain solutions
16:05 “K” Line obtains VSPS regarding Australian quarantine for car carrier
15:55 LR and InterManager share new insights into the causes of lifeboat accidents
15:50 Sea Port of Saint-Petersburg upgrades its infrastructure
15:14 Diana Shipping announces the acquisition of a resale new-building Capesize dry bulk vessel
14:57 Arctia’s IB Otso sets off for the Bay of Bothnia as the season’s first icebreaker
14:35 Cargo traffic within Azov-Don Basin of Russia’s IWWs fell by 14.2% in 2021
14:03 Jan De Nul receives the transport & installation for Vesterhav Nord & Syd wind farm in Denmark
13:48 Onezhsky Shipyard lays down sixth crab catching ship for Russian Crab Group
13:16 DOTr, PPA unveil P316 million Zamboanga port expansion
12:42 Cargo transportation by Volga-Don Canal decreased by 10.6% in navigation season 2021
12:14 New technology risks must be tackled despite decade of progress in ship safety, warns DNV
11:57 Сruise ship Peotr Veliky made first technological voyage
11:38 Mohammed bin Rashid and Mohamed bin Zayed launch UAE Rail Program
11:14 IAA PortNews’ summary of previous week news
10:51 MABUX: No firm trend on Global bunker market on Dec 06
10:20 New shipyard for large-capacity facilities should be built in Russia – opinion
09:29 Crude oil market sees recovery of prices
09:12 Baltic Dry Index as of December 3

2021 December 5

15:03 GasLog Ltd. places order at DSME for four 174000m3 gas carriers
13:27 USCG holds annual SaR exercise off Maui
12:33 Port of Felixstowe tops 100 million TEU
11:51 Vuosaari fairway deepening project completed on schedule, safely and under budget
10:47 New regional technology clusters in WA and Qld driving growth in Australia’s hydrogen sector

2021 December 4

15:21 MOL and Flotation Energy to explore offshore floating wind in Japan