[200810.EN.SEA] AP Moller-Maersk Profit Hits US$ 2.52 Billion In First Half

INCREASING demand for container business lifted the profit of AP Moller-Maersk Group to US$2.52 billion in the first half year on year drawn on 20 per cent more revenue of $27.4 billion.

The group forecast net full-year profit to exceed $4 billion. Meanwhile, Maersk Line recorded $1.3 billion in operating profit in the first half as revenue grew 32.8 per cent to $12.5 billion. Its performance accounted for 46 per cent of the AP Moller-Maersk Group's revenue in the first half, up five per cent year on year.

The company said demand for containerships increased freight rates. Average rates, including bunker surcharges, were up 31 per cent to $2,986 per FEU in the first half compared to $2,288 a year ago. Freight rates soared 43 per cent year on year in the second quarter.

This gave Maersk an average profit of $364 per FEU compared to a $261 loss one year ago. Volume increased 11 per cent to 7.2 million TEU, while rates increased 31 per cent. 

Also, transpacific volume for Maersk grew 11 per cent, while Asia-Europe volume climbed five per cent, which included an eight per cent hike on the head-haul and a two per cent less on the backhaul.

Maersk Line and sister company Safmarine boosted container traffic 11 per cent in the first half to 7.2 million TEU from 6.6 million TEU a year ago. Yet the cargo volume growth was down to five per cent in the second quarter.

Although the rebound in the group's sales turnover was better than expectation, it remains cautious about the outlook for Q4 and finds difficult to forecast whether the good times will last.

Source : HKSG, 20.08.10.