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Maersk Group’s H1 profit swells by 40 pc to $ 2.4 billion |
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02/09/2008 |
| Shipping arm’s revenue up by 16 pc
THE A.P. Moller-Maersk Group has announced that first half 2008 profit after accounting for discontinued operations amounted to DKK11.9 billion ($ 2.4 billion), up by 40 per cent year-on-year.
Revenue grew by 13 per cent to DKK148 billion ($ 30.4 billion), mainly due to higher oil prices and an increased share from oil production, as well as higher freight rates and volumes in the container activities, a statement from the group said.
The container shipping arm registered a profit of $ 73 million, as against a loss of $ 219 million in the first half of 2007. Excluding sales gains and non-recurring costs relating to the streamline initiatives, the net result was negative with $ 82 million, the group release said. Maersk Line’s revenue for the first-half grew by 16 per cent compared to the same period of 2007.
"The container-related activities suffered from the higher bunker prices, the slowdown in global trade, and significant new tonnage entering the global container vessel fleet", it said.
Group cash flow from operating activities amounted to DKK 22,579 million, corresponding to an increase of 30 per cent compared to the first half of 2007. In dollars, the increase was 49 per cent to $ 4.63 billion, primarily affected by a significant improvement in operating cash flow in the oil and gas activities.
A total volume of 3.5 million FEUs was handled by Maersk Line and Safmarine in the first half of 2008, an increase of 5 per cent over the same period of 2007. Within this total, Maersk Line transported 3.1 million FEUs, up by four per cent year-on-year.
Volumes on the trades between Asia and Europe increased by one per cent for the first half of 2008, but experienced a drop in volume of two per cent in the second quarter compared to the same period of 2007.
Volumes on the transpacific trades decreased by seven per cent, impacted by the closure of a number of inland destinations in the US during 2007. However, in the second quarter, volumes increased by five per cent. The Africa and Latin America trades experienced growth compared to the first half 2007, at 18 per cent and five per cent, respectively.
"The average rates for Maersk Line increased by 12 per cent compared to the first half of 2007, mainly affected by compensation for higher fuel costs. Especially the Asia to Europe trades, where considerable rate increases were realised during 2007 and early 2008, contributed to the development. With the addition of new tonnage and low growth in volumes from China to Europe, the Asia to Europe market has softened and freight rates are decreasing. Utilisation was around the same level as in the first half of 2007, positively impacted by vessel sharing agreements on transpacific and Oceania trades and negatively by lower utilisation on Asia to Europe trades", the group said in a statement. |
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