Maersk returns Q1 profits

Both the Maersk Group
and Maersk Line returned
profits in the first quarter
of this year.
The Group delivered a
profit of US$790 million,
a 34% drop compared
to the profit of US$1.2
billion in the first quarter
of 2012. Meanwhile, the
line made a profit of
US$204m, a whopping
134% up on the loss of
US$599m last year.
“We have improved our
performance in the past
year and we are satisfied
with our result for the first
quarter,” said Group CEO
Nils S Andersen.
“Maersk Line is much
more competitive and
has gained strength to
deal with the challenging
shipping markets.”
The significant
turnaround in the line’s
financial performance was
achieved through lower
costs – as revenue of
US$6.3bn was unchanged.
The average freight
rates increased 4.7%
compared to Q1 2012,
partly offset by 4% lower
volumes. Total cost
per FFE decreased by
7.1% mainly driven by
vessel improved network
efficiencies. Maersk
Line’s fleet capacity
increased 4.2%.
Maersk Line continued
to utilise super slow
steaming to reduce
emissions and save bunker
cost. The 26% decrease in
bunker cost to US$1.4bn
compared to Q1 2012
was due to 19% lower
bunker consumption and
9% decrease in average
bunker price.
The line’s forecast for
the year indicates that
demand is expected to stay
subdued while capacity
will grow significantly.
Accordingly, conditions
for the container industry
remained challenging and
managing supply would be
even more important this
year, the report added.
Maersk Line still
expects a result for the
full year to be above the
US$461m for 2012. This is
based primarily on further
unit cost reductions and
the stronger result in Q1
compared to last year.
Global demand for
seaborne containers is
expected to increase by
2%-4% in 2013. The
expectations are lower on
the Asia-Europe trades,
but will be supported
by what is forecast to be
higher growth for imports
to emerging economies.
“Overall, the result
represents the fourth
consecutive profitable
quarter in a challenging
business environment.
However, the profitability
level remains
unsatisfactory,” the report
concluded.