AP Moller-Maersk back in black, posts US$5 billion profit

DANISH transport giant AP Moller-Maersk Group has posted a 2010 profit of US$5 billion, erasing a $1.31 billion 2009 loss, which was its first since World War II.


"Container activities delivered a profit of $2.6 billion for 2010," said a company statement, adding that it was a "dramatic improvement" over 2009 and even bested the $205 million profit made 2008, considered a stellar year.


Said group CEO Nils Andersen: "Our people have done a truly great job. Even if markets improved strongly in 2010, container rates and volumes were only at par with 2008. This means significant profit improvements stem from our own efforts. We can be very satisfied with the result."


In general, the gain was attributed to better container rates and volumes, reduced costs per unit and high oil prices, which contributes to Maersk revenues because of its oil interests.


Mr Andersen said 2010, unit costs were reduced by four per cent - excluding bunker costs - but bunker consumption was reduced by an additional 10 per cent.


In 2011, Maersk Line aims at winning back the market share it lost in 2010, but "not through rate dumping, but by delivering a superior product as regards reliability, availability and customer service", said Mr Andersen.


Recently, Geneva's Mediterranean Shipping Company (MSC) has become the world's biggest container shipping line, replacing Maersk Line in No 1 spot, but when taken together with other Maersk container assets, Safmarine and MCC, the AP Moller Maersk Group still tops the international container league tables.


Maersk Oil made a $1.7 billion 2010 profit compared to $1.2 billion 2009 profit, almost entirely attributable to a 29 per cent increase in oil prices. Oil production declined, but the company said it was making investments to replace oil reserves.


In the last two months, it invested $2.4 billion in oil fields in Brazil, $1.2 billion in new drilling rigs and $1.9 billion in containerships.


"We see strong potential in growth markets, where the number of middle-income consumers is booming. In 2011, we will focus the main part of our attention and investments in these markets, where we already have a strong presence," Mr Andersen said.
(Source:http://www.schednet.com)