Maersk: Profits in 2017, meantime here's more red ink

FEBRUARY 8, 2017 — A.P. Møller - Mærsk A/S racked up an unwelcome distinction today, reporting the largest annual deficit ever posted by any Danish company.

Although the group delivered an underlying profit of $711 million in 2016, which was in line with its guidance, it reported a loss of $1.9 billion after taking impairments in 2016 of $2.7 billion in Maersk Supply Service and Maersk Drilling as a consequence of an expected weaker outlook.

Maersk Line recorded a loss of $376 million (compared to a prior year profit of $1.3 billion) and a ROIC of negative 1.9% (positive 6.5%). Its underlying result was a loss of $384 million (profit of $1.3 billion) due to poor market conditions leading to sustained lower freight rates partly offset by higher volumes and lower unit costs related to lower bunker price, higher utilization and cost efficiencies.

"2016 was a difficult year financially, with headwinds in all of our markets. However, it was also a year when we decided to substantially transform A.P. Moller - Maersk for the future. We have set a new course that over the next few years will lead A.P. Moller - Maersk to become a focused container shipping, logistics and ports company with the aim of growing revenue again," said Maersk Group CEO Søren Skou.

"Our priorities for 2017 remain on integrating our Transport & Logistics businesses as well as progressing the work on finding structural solutions for each of our oil and oil-related businesses," said Mr. Skou. "For 2017, we expect A.P. Moller - Maersk to deliver an underlying profit above 2016, with an improvement in underlying profit in excess of $1 billion in Maersk Line compared to 2016.


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