A.P. Moller - Maersk Group releases Interim Report 2009

In the first half of 2009, the global economic crisis had a severe negative impact on the activities of the A.P. Moller – Maersk Group. Freight rates and volumes for the Group’s container shipping activities were 30% and 7%, respectively, below the same period of 2008, and average rates for the tanker activities were considerably lower than in the first half of 2008. The average crude oil price (Brent) was 52% lower than in the first half of 2008. This had a negative impact on the oil and gas activities, which was partly offset by an 8% increase in the Group’s share of oil and gas production. The Group’s other business areas were also negatively affected by the global economic crisis, but to varying degrees. The result for the second quarter was slightly better than announced, as the result, excluding impairment losses and write-downs of USD 200 million, was positive by USD 33 million.
• Revenue for the period fell by 25% to USD 22,752 million. The net result for the period was a loss of USD 540 million, compared to a profit of USD 2,456 million in the same period of 2008.
•In the first half of 2009, impairment losses on intangible assets and property, plant and equipment totalled USD 223 million, primarily relating to Tankers, offshore and other shipping activities, compared to USD 10 million in the first half of 2008.
•Gains on sale of ships, rigs, etc. were USD 79 million, compared to USD 735 million in the same period of 2008.
•Cash flow from operating activities was in USD 42% below the same period of 2008, with a negative effect from lower earnings but a positive effect from reduction in working capital. The cash flow used for capital expenditure, USD 4.2 billion, mainly relates to offshore activities, oil and gas activities and container shipping.
•Financing of the Group’s newbuilding programme for ships and rigs is considered to be substantially in place.
•Shipbuilding activities at Odense Steel Shipyard will be phased out as existing orders are completed.
•Considerable cost savings have been achieved in the Group’s business areas and group functions.

Outlook for 2009
The result for the second half of 2009 is expected to be at the same level as the first half year. The outlook for the remainder of 2009 is subject to considerable uncertainty, not least due to the development in the global economy. Specific uncertainties relate to the development in container freight rates, transported volumes, the USD exchange rate, oil prices and asset values.

(Source: Transport Weekly)