Tuesday, January 16, 2018

Shipper Moller-Maersk posts Q4 loss of $2.5 billion


Wednesday, February 10, 2016
by MATTI HUUHTANEN,

A tractor trailer carrying a Maersk shipping container is a common sight on U.S. highways. (The Trucker file photo)
A tractor trailer carrying a Maersk shipping container is a common sight on U.S. highways. (The Trucker file photo)

HELSINKI — Hit by sharp declines in freight rates and the oil price, Danish shipping and energy group A.P. Moller-Maersk said Wednesday it turned a $2.5 billion loss in the fourth quarter, a big turnaround from the profit of $189 million in the equivalent period a year earlier.

Stock in the company, which is watched as a bellwether for global trade, stock plunged 4 percent to 7,850 kroner in afternoon trading in Copenhagen.

The world's largest shipping company said it had written down the value of some of its oil assets by $2.6 billion in light of the sharp fall in the price of oil over the past year and that it expects no improvement in 2016. It cautioned that the full-year result would be "significantly below" 2015.

Still, CEO Nils Smedegaard Andersen said he was satisfied with what he described as a good operational performance over the full year, with the group posting a net profit of $925 million, down 85 percent from $5.2 billion in 2014. Revenue fell 15 percent in the full year to $40.3 billion.

"Despite the very challenging market conditions in our industries, all business units delivered positive underlying profits," he said.

The group said that after a satisfactory result in the first half of the year it was "severely impacted by a widening supply-demand gap across most of our businesses."

Maersk Oil made a loss of $2.1 billion in 2015 compared to a loss of $861 million a year earlier, and the company said it expects "a negative underlying result" in the sector in 2016.

Maersk employs some 90,000 people in 130 countries.

The Trucker staff can be reached to comment on this article at editor@thetrucker.com.

Find more news and analysis from The Trucker, and share your thoughts, on Facebook.

 

Video Sponsors