Maersk Group reports profitable first quarter

MAY 17, 2013 — “We have improved our performance in the past year and we are satisfied with our result for the first quarter,” said Group CEO Nils S.Andersen as Maersk Group reported a first quarter profit of $790 million. “

“Maersk Line is much more competitive and has gained strength to deal with the challenging shipping markets,” said Mr. Andersen. During the year, Maersk Oil has replaced its reserves successfully and we will continue with a high exploration level to develop our portfolio for the long term. APM Terminals continues to progress in growth markets while Maersk Drilling has overcome its operational issues and is back on track.”

Maersk Line made a profit of $ 204 million (loss of $599 million) and a ROIC of 4.0 percent (negative 12.7 percent). The significant turnaround in the financial performance was achieved through lower costs as revenue was unchanged at $6.3 billion.

The average freight rates increased 4.7 percent compared to first quarter 2012 partly offset by 4 percent lower volumes. Total cost per FFE decreased by 7.1 percent mainly driven by vessel improved network efficiencies. Maersk Lines fleet capacity increased 4.2 percent.

Maersk Oil made a profit of $ 346 million compared with $ 1.3 billion in the equivalent 2012 quarter anda ROIC of 20.6 percent (76.5 percent). The result was negatively affected by lower average oil price of $ 112 per barrel ($ 119 per barrel) and lower entitlement production of 239,000 boepd (254,000 boepd) mainly due to reduced
ownership share and production in Denmark which was partly offset by higher entitlement production in Qatar,U.K. and Algeria. The profit for Q1 2012 was positively affected by the settlement of an Algerian tax dispute of $899 million and a divestment gain of $ 92 million after tax.

APM Terminals made a profit of $166 million ($226 million).Q1 2012 included divestment gain of $73 million after tax. ROIC was 12.0 percent (20.1 percent).Positive developments in terminals in high growth markets were able to offset reduced volumes in North America and Western Europe, as well as reduced activity in Inland Services following the divestment of Maersk EquipmentService Company Inc., USA (MESC) in March 2012. The number of containers handled was at the same level as Q1 2012, while the global market increased by 3 percent.

Maersk Drilling made a profit of $146 million ($123 million)and ROIC was 13.0 percent (13.0 percent). The increase in profit was mainly due to general higher operational uptime in Q1 2013.

All of Maersk Drilling’s 16 jack-ups and floaters, its 10 drilling barges in Venezuela and the managed semi-submersible have been on contract in Q1 2013.

Currently Maersk Drilling has three jack-up rigs and four drillships under construction. Contracts are already secured with customers for the three jack-ups and the first two drillships. Maersk Drilling is in discussions with oil companies for the employment of the two remaining newbuild drillships.

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