A.P. Møller – Mærsk A/S grows revenue and underlying profit in the third quarter of the year
2017-11-07 14:41

A.P. Møller – Mærsk A/S grows revenue and underlying profit in the third quarter of the year

INTERIM REPORT Q3 2017

In Q3, the revenue of A.P. Møller – Mærsk A/S’ continuing operations increased by 14% year on year driven by higher freight rates in Maersk Line. The underlying profit was USD 248m, with an improvement of USD 290m in Transport & Logistics and a decline of USD 15m in Energy.

For A.P. Møller – Mærsk A/S, the third quarter of the year was a defining quarter of major change, where strong and viable solutions were found for Maersk Oil and Maersk Tankers. Furthermore, today A.P. Møller – Mærsk A/S has announced that the Salling Companies will acquire the remaining 19% shares in the Dansk Supermarked Group. A.P. Møller – Mærsk A/S’ now expects a positive underlying profit (loss of USD 546m). Transport & Logistics now expects an underlying profit of around USD 1bn and an improvement in Maersk Line of around USD 1bn compared to 2016 (loss of USD 384m).

“I am pleased with the agreements reached in Q3 for Total S.A. to acquire Mærsk Olie og Gas A/S and A.P. Møller Holding to acquire Maersk Tankers A/S, which indicates a solid progress in the separation of the Energy businesses. Whilst solutions for Maersk Drilling and Maersk Supply Service remain to be defined before the end of 2018, the future Maersk will leverage even further its position of strength within Transport & Logistics,” says Søren Skou, CEO of A.P. Møller – Mærsk A/S.

Transport & Logistics reported a revenue growth of 14% to USD 8bn. Performance was challenged from the June cyber-attack of which the financial impact is in the range of USD 250-300m. The cyber-attack primarily impacted July and August and the vast majority of the impact is related to Maersk Line that reported an underlying profit of USD 211m and a positive ROIC of 4.3%.

“The revenue increased in Transport & Logistics by 14% and was mainly driven by higher revenue in Maersk Line. Market fundamentals stayed positive with global container volume growth at 5% in the third quarter compared to the same period last year and an increase in nominal supply of 3%. However, contingency initiatives related to recovery after the cyber-attack resulted in a negative development in Maersk Line volumes of 2.5% and increase in unit cost of 3.9% at fixed bunker prices,” says Søren Skou.

Transport & Logistics continues to develop new digital services to customers offering better and simpler products across the supply chain. In September, Maersk Line launched the Remote Container Management for customers, which provides customers shipping refrigerated cargo with an unprecedented understanding of their supply chain.

[All figures in USD million. Revenue - 2017: 8046, 2016: 7073, Change: 14% / Profit before deprecation, amortisation and impairment losses, etc. - 2017: 978, 2016: 650, Change: 50% / Deprecation, amortisation and impairment losses, net - 2017: 798, 2016: 646, Change: 24% / Gain on sale of non-current assets, etc., net - 2017: 6, 2016: 10, Change: -40% / Profit/loss before financial items - 2017: 4, 2016: 72, Change: - 94% / Profit/loss before tax - 2017: -101, 2016: 8, Change: N/A / Profit/loss from continuing operations - 2017: -120, 2016: -30, Change: 300% / Profit/loss from discontinued operations - 2017: -1419, 2016: 468, Change: N/A / Profit/loss for the period . 2017: -1539, 2016: 438, Change: N/A / Underlying result - 2017: 248, 2016: -42. Change: N/A / Cash flow from operating activities - 2017: 426, 2016: 510, Change: -16% / Cash flow used for capital expenditure - 2017: -1371, 2016: -497, Change: 176% / Return on invested capital after tax (ROIC), annualised - 2017: -0.2%, 2016: 1.1%]

Net loss for the period including discontinued operations was USD 1.5bn negatively impacted by an accounting impairment of USD 1.75bn in Maersk Drilling following classification as discontinued operations and impairments of USD 374m in APM Terminals.

SENSITIVITY GUIDANCE Q3 2017:
[Factors, Change, Effect on A. P. Møller-Mærsks underlying profit Rest of year // Bunker price, +/-100 USD/tonne, +/-USD 0.1bn // Container freight rate, ´/-100 USD/FFE, ´/-USD 0.3bn // Container freight volume, ´/-100,000 FFE, ´/-USD 0.1bn]

For the full Q3 interim report, see Maersk Financial Reports.


Source: Global News Wire (LF)

Source: Maersk Financial Reports