CEO of A.P. Møller – Mærsk A/S, Søren Skou, states: “A.P. Møller – Mærsk A/S delivered an underlying profit of USD 201m in line with same quarter last year. Whilst we cannot be satisfied with the overall profitability in the first quarter, the result is as expected and we reiterate our guidance for the year for the Group.
We delivered year-on-year revenue growth for the first time since Q3 2014 in line with our ambitions to become a growth company again. Revenue increased by 5pct or USD 424m to USD 9.0bn as a result of revenue growth in Maersk Line and Maersk Oil.
Maersk Line is on track to deliver a result improvement of above USD 1bn for 2017 compared to 2016, despite an underlying loss of USD 80m in Q1, driven by a USD 381m higher fuel bill. Both spot freight rates and contract rates have increased during the quarter, lately also on the North-South trades. Maersk Line is focused on restoration of profitability and maintaining market share in the next quarters, as industry fundamentals improve.
The Hamburg Süd acquisition is progressing as planned towards a closing in fourth quarter, subject to regulatory approvals. The acquisition will deliver substantial revenue, volume and market share growth as well as operational synergies of USD 350-400m per year from 2019.
We are starting to see synergies in Transport & Logistics, for example with Maersk Line increasing volumes to APM Terminals, improved collaboration between Maersk Line and Maersk Container Industry leading to significantly higher volumes and improved results, as well as cost synergies on Sales, General & Administration.
Our Energy division is progressing on defining sustainable structural solutions for the individual businesses and was profitable in first quarter with Maersk Oil delivering strong earnings. Oil price was up year-on-year, and we saw moderate signs of increasing activity in off-shore markets of Maersk Supply Service and Maersk Drilling, albeit from very low levels. Focus here continues to be on cost, efficiency and up-time. Maersk Tankers’ result was impacted by deteriorating market rates, which was partly offset by costs savings.”
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Source: Maersk Line
