NOVEMBER 11, 2014 — In its third quarter report released today, A.P. Møller - Mærsk A/S says it delivered a profit of $1.5 billion ($1.2 billion) and a return on invested capital (ROIC) of 12.7% (9.5%).
"We are very satisfied with the result for the third quarter of 2014 where we achieved an underlying profit of $1.3 billion, driven by operational improvements in Maersk Line, Maersk Oil and APM Terminals. Looking at the first nine months, the Group's underlying result has improved by $729 million, equaling 25 percent, compared to same period last year. We are well positioned to take advantage of opportunities materializing in a volatile macroeconomic environment, and despite some caution in relation to the market outlook for the coming quarters, we maintain our outlook for the Group result to be around $4.5 billion for the year," says Group CEO Nils S. Andersen.
In its guidance for 2014, the Group still expects a result for 2014 significantly above the 2013 result of $3.8 billion. The underlying result is still expected to be around $4.5 billion ($3.6 billion) when excluding discontinued operations, impairment losses and divestment gains.
Gross cash flow used for capital expenditure is now expected to be around $9 billion from previous expectations of around $10 billion ($6.3 billion).
Cash flow from operating activities is expected to develop in line with the result.
Maersk Line now expects a result for 2014 above $2 billion based on good third quarter performance. The global demand is now expected to grow by 3-5% (previously 4-5%).
Maersk Oil still expects an underlying result in line with 2013 ($1.0 billion). Including a $1.7 billion asset impairment in Brazil, the expected full year loss remains around $0.7 billion based on an average oil price for the year of $102 per barrel (previous expectation was $108 per barrel). Maersk Oil's entitlement production for 2014 is still expected to be above 240,000 boepd (235,000 boepd) with Q4 production expected to be higher than Q3 production.
APM Terminals still expects an underlying result above 2013 ($708 million).
Maersk Drilling still expects an underlying result below 2013 ($551m) due to planned shipyard stays and high costs associated with training and start-up of operation of six new rigs.
APM Shipping Services still expects an underlying result around the same as 2013 ($294 million).
Read the third quarter report HERE