Maersk Group delivered an “unsatisfactory” loss of US$ 1.9 billion in 2016, against a profit of US$925 million recorded in 2015.
"2016 was a difficult year financially, with headwinds in all of our markets. However, it was also a year when we decided to substantially transform A.P. Moller-Maersk for the future. We have set a new course that over the next few years will lead it to become a focused container shipping, logistics and ports company with the aim of growing revenue again,” said Maersk Group CEO Søren Skou in a statement issued today.
He added that the group expected A.P. Moller-Maersk to deliver an underlying profit this year, mainly driven by an improvement in underlying profit in excess of US$1bn in Maersk Line compared to 2016.
For 2016, Maersk Line recorded a loss of US$376 million compared to the profit of US$1.3bn achieved in 2015. Skou attributed the loss to poor market conditions leading to sustained lower freight rates. He added that this was partly offset by higher volumes and lower unit costs related to lower bunker prices, higher utilisation and cost efficiencies.
Skou pointed out that Maersk Line had reached an agreement on December 1, 2016 to acquire Hamburg Süd, the German container shipping line. “The acquisition is subject to final agreement expected early in Q2 2017 and to regulatory approvals expected end 2017. The transaction is expected to be completed by end 2017,” he said.
