English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese

Maersk Group profit collapses

Soren Skou Maersk Group CEOCOPENHAGEN: August 12, 2016. Second quarter (Q2) revenue for the Maersk Group fell 16 percent year-on-year to US$8.86 billion. As a result, net profit collapsed 89 percent to US$118 million from US$1.09 billion in the same period last year.

For the first six months of 2016, the group produced revenue of US$17.4 billion, down from US$21.1 billion in 2015, and a net profit of US$342 million compared to US$2.7 billion last year.

Despite reducing costs to "an all-time low" of under US$2,000 per forty-foot equivalent (FFE), newly-appointed CEO Soren Skou (right) described the results as "unsatisfactory" – and cited low growth and falling freight rates.

Maersk Line reported a 19 percent drop in Q2 revenue to US$5.1 billion due to a 24 percent fall in average freight rates to US$1,716 FFE. The result was a loss of US$151 million compared to a profit of US507 million in the same period last year. Container volume for Q2 rose 6.9 percent to 2.65 million FFE while fleet capacity increased 2.2 percent.

APM Terminals made a profit of US$112 million compared to US$161 million last year while logistics provider Damco, part of APM Shipping Services, reported a profit of US$10 million – up from US$7 million in Q2 2015 – on revenue of US$619 million, down 5.5 percent.

With the exception of Maersk Oil that is expected to produce a positive return on investment, Maersk Group said its other divisions would report an underlying performance below last year results.

"Our financial position remains strong with a liquidity reserve of US$11.5 billion. The group's expectation for 2016 of an underlying result significantly below last year is unchanged," said Skou. "To ensure the future strength, profitability and development of new growth opportunities of the company, the board of directors have initiated a strategic review of the company and will report on progress of the review before the end of Q3, 2016," he added.

Maersk has also acknowledged that in order to maintain and grow its businesses in a low interest environment it has to accept the potential of making investments "that at present do not on a standalone basis fully comply" with a 10 percent return on invested capital target.

Standard & Poor's has put the Maersk Group's rating of BBB+ on CreditWatch negative versus a previous negative outlook. The rating from Moody's remains Baa1 with a stable outlook.

News

Written on 15/02/2018, 17:39
first-uae-built-satellite-nears-launch-dateDUBAI: February 15, 2018. The first satellite developed and built at the Mohammed Bin Rashid Space Centre (MBRSC) by Emirati engineers has been flown to...
Written on 14/02/2018, 22:30
saudi-arabia-and-uae-provide-mobile-lift-for-yemen-aid-programSANA'A, Yemen. February 12, 2018. Prior to disbursing US$1.0 billion in humanitarian aid to Yemen next month, Saudi Arabia and the UAE recently arranged...
Written on 14/02/2018, 16:09
master-showjumpers-travel-in-styleHONG KONG: February 14, 2018. The latest Longines Masters equestrian event ended last weekend with a Grand Prix win by France's Patrice Delaveau on his...
Written on 12/02/2018, 18:37
humanitarian-logistics-databank-launchedDUBAI: February 11, 2018. The Humanitarian Logistics Databank, an information-sharing platform for aid agencies, has been launched by Princess Haya bint...
Written on 10/02/2018, 23:29
gac-to-manage-yamal-lng-icebreaker-fleetSABETTA PORT, Russia. February 09, 2018. The Yamal LNG gas project has appointed GAC Russia to manage its fleet of icebreaker tankers at Sabetta for the...
Written on 09/02/2018, 18:26
drones-about-to-take-off-in-singaporeSINGAPORE: February 07, 2018. Airbus has partnered with the Civil Aviation Authority of Singapore and Singapore Post to test its Skyways package delivery...
Written on 06/02/2018, 15:55
singapore-tops-new-belt-road-indexSINGAPORE: February 05, 2018. According to an index of real estate prospects in 67 countries along China's Belt & Road Initiative (BRI), Singapore,...
Written on 04/02/2018, 21:56
record-profit-for-amazon-undermines-the-need-for-tax-breaksWASHINGTON, DC: February 01, 2018. A report from the U.S. Economic Policy Institute (EPI) concludes Amazon fulfillment centers do not boost overall...
Written on 04/02/2018, 21:27
tiaca-adopts-new-vision-with-makeoverMIAMI: January 31, 2018. The International Air Cargo Association has announced a new vision that includes more training and consultancy projects to ensure...
Written on 04/02/2018, 20:26
cartel-members-fined-169-millionLUXEMBOURG: February 01, 2018. The Court of Justice of the European Union has upheld €169 million in fines originally imposed by the European Commission...
Written on 01/02/2018, 20:16
iata-confirms-a-record-year-for-air-cargoGENEVA: January 29, 2018. IATA reports a 9.0 percent year-on-year increase in freight tonne-kilometers (FTKs) in 2017, noting it was the strongest...
Written on 28/01/2018, 18:01
us-4-5-trillion-circular-economy-goes-mainstreamDAVOS, Switzerland: January 24, 2018. BMW has joined 29 major corporations with collective annual revenues of US$1.3 trillion in supporting a circular...
Written on 27/01/2018, 01:21
low-marks-for-russian-corporate-transparencyMOSCOW: January 25, 2018. Transparency International (TI) Russia has published a first-ever study on the financial transparency of 200 Russian companies...
Written on 27/01/2018, 00:09
boeing-loses-bombardier-anti-dumping-caseWASHINGTON, DC: January 26, 2018. In a blow to the Trump administration and Boeing, the U.S. International Trade Commission (ITC) has ruled unanimously...
Written on 26/01/2018, 21:28
ndia-s-gst-expected-to-reduce-tax-ratesKUWAIT CITY: January 25, 2018. According to the latest survey of global logistics executives by Agility, India's GDP is accelerating again after early...
Written on 23/01/2018, 20:30
logistics-industry-optimism-for-emerging-marketsBAAR, Switzerland: January 22, 2018. Emerging markets have ignored growing populism in the U.S. and parts of Europe to "look brighter than they have in...
Written on 22/01/2018, 18:23
u-s-imposes-mandatory-air-cargo-screeningWASHINGTON, DC: January 22, 2018. The U.S. Transportation Security Administration (TSA) has issued an emergency order requiring airlines flying to the...
Written on 18/01/2018, 20:29
extreme-weather-is-world-s-greatest-economic-risk LONDON: January 17, 2018. The latest Global Risks Report from the World Economic Forum (WEF) says extreme weather events are seen as the greatest...
Written on 18/01/2018, 15:17
amazon-shortlists-20-u-s-cities-for-second-headquartersSEATTLE: January 18, 2018. Amazon has chosen 19 U.S. cities plus Toronto, Canada from 238 locations across the U.S., Canada, and Mexico as possible sites...
Written on 17/01/2018, 21:42
seat-builds-spain-s-tallest-logistics-warehouseBARCELONA: January 15, 2018. Car manufacturer SEAT (Sociedad Española de Automóviles de Turismo) is constructing a new automated logistics center to store...

- powered by Quickchilli.com -