The AP Moller-Maersk conglomerate, which includes Maersk Line and APM Terminals (APMT), reported second quarter profits of US$118 million, 89% below the US$1.09 billion in the second quarter of 2015.
The group’s underlying profit*, meantime, was US$134m.
CEO Soren Skou attributed the significant drop to lower oil prices, freight rates, charter rates and terminal rates, all of which resulted in the 16% drop in revenues. “Cost reductions and operational optimisations, however, made a significant contribution to mitigating the impact of the negative market conditions,” he added.
Meanwhile, Maersk Line delivered an underlying loss of US$139m. This, according to Skou, was despite the costs in the line having been reduced to an all-time low level, being under US$2 000/FFE for the first time.
* Unlike the ‘accounting profit’ that is recorded on financial statements, ‘underlying profit’ is the number calculated by the company to show what it believes to be an accurate reading of the company's profit position and may exclude one-time charges or infrequent events.
