Higher bunker prices push Maersk Line into first quarter loss

Soren Skou, CEO, A.P. Møller - Mærsk A/S Soren Skou, CEO, A.P. Møller - Mærsk A/S

MAY 11, 2017 — In line with expectations, A.P. Møller - Mærsk A/S reported a profit of $253 million ($224 million) with a return on invested capital (ROIC) of 3.5% (2.9%),in its first quarter interim report, published today. Gross cash flow used for capital expenditure was $1.6 billion ($2.1 billion). .

The underlying profit of $201 million ($214 million) was at the same level as last year, reflecting an increase of $321million in Maersk Oil due to higher oil price and lower operating expenses, offset by decreases in almost all other businesses. In particular, the overcapacity in the drilling industry led to a decrease of $175 million in Maersk Drilling and, despite increasing freight rates, Maersk Line experienced a decrease of $112 million primarily due to higher bunker costs.

"A.P. Møller - Mærsk A/S delivered an underlying profit of $201 million in line with same quarter last year," said Soren Skou, CEO, A.P. Møller - Mærsk A/S. "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."

"Maersk Line is on track to deliver a result improvement of above $1 billion for 2017 compared to 2016, despite an underlying loss of $80 million in Q1, driven by a S381million higher fuel bill," said Mr. Skou. "Both spot freight rates and contract rates have increased during the quarter, lately also on the North-South trades. Maersk Line is focused on restoration of profitability and maintaining market share in the next quarters, as industry fundamentals improve."



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