[020314.EN.SEA] Maersk Group Profit Off 6pc To US$3.7 Million, But Box Earnings Up 3 Fold

AP MOLLER Maersk group posted a year-on-year six per cent net profit decline in 2013 to US$3.7 million, drawn on revenues of $47.3 billion, down four per cent, the company announced.

But Maersk Line posted a 225 per cent year-on-year profit increase to $1.5 billion.

"The improvement was achieved through vessel network efficiencies resulting in lower unit costs, also supported by lower bunker prices," said a statement accompanying the annual report.

"The group expects a result significantly above the 2013 result. Maersk Line expects a result in line with 2013," said the statement.

While global demand for seaborne container transport is expected to increase four to five per cent and Maersk aims to grow with the market, excess capacity is expected to depress freight rates, the company said.

Freight rates decreased 7.2 per cent to $2,674 per FEU against $2,881 the year before though volumes increased four per cent to 8.8 million FEU, said the company, adding that bunker consumption was reduced 12 per cent.

APM Terminals profit increased 10 per cent year on year to $770 million, with its throughput gaining three per cent to 36.6 million TEU worldwide, boosted by additions to the portfolio.

"Earnings were positively affected by full year profit contribution of the co-controlling share of Global Ports Investments PLC, Russia, acquired in November. Further, the jointly-owned Brasil Terminal Portuario in Santos commenced operations," the statement said.

"APM Terminals expects a result above 2013 and to grow even more than the market supported by increased contribution from joint ventures and associates combined with productivity improvement in existing facilities," the group said.

Damco made a loss of $111 million against last year's profit of $55 million. "The result was primarily impacted by significant business transformation costs and provisions," the statement said.

Maersk Oil was hurt by the fall in petroleum prices and well as a decline in its market share.

"Maersk Oil made a profit of $1 billion, against last year's earnings of $2.4 billion, negatively affected by lower average entitlement production and lower average oil prices, $109 per barrel versus last year's $112 per barrel.

Source : HKSG.