Denmark’s AP Moller-Maersk has delivered a first quarter profit of $253m, up 12.9% year-on-year, aided by higher earnings from Maersk Oil but offset by decreases in almost all other businesses including Maersk Line.
The quarterly revenue was recorded at $8.96bn, slightly higher compared to $8.54bn in the previous corresponding period.
Søren Skou, ceo of AP Moller-Maersk, commented: “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.”
The group’s energy division 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,” Skou said.
Maersk Line, however, sank to a first quarter loss of $66m as against the profit of $37m in the year-ago period due mainly to a 80% hike in bunker bills.
Skou pointed out that with the acquisition of Hamburg Sud progressing as planned towards a closing in the fourth quarter, the deal will deliver substantial revenue, volume and market share growth as well as operational synergies of $350-400 per year from 2019.
Skou added: “We are starting to see synergies in transport and 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 and administration.”