Cargo Business Newswire

Wednesday, August 20, 2014

Top Story

Maersk Line nearly doubles profits in Q2

Shipping giant Maersk Line nearly doubled profits in the second quarter on tighter cost controls and lower fuel prices.

The Danish shipping line made a second-quarter net profit of $439 million, significantly besting an average analyst forecast of $99 million.

Parent company A.P. Moller-Maersk raised its annual profit forecast Friday, and its shares increased 6 percent to their highest level in 18 months. Maersk Line generates nearly half of the group’s revenue and its success has served to shore up the current weakness in the company's oil business.

The parent group’s second-quarter net profit fell 11 percent to $856 million, against a forecast for a 30 percent drop to $667 million in a Reuters poll of analysts.

"The biggest swing factor in Maersk's result is always Maersk Line, and the unit's result today nearly knocks you off your chair," said Sydbank analyst Jacob Pedersen.

While cautious about calling it an end to the slump that has held down the industry since the 2008 financial crisis, Chief Executive Nils Smedegaard Andersen predicted a measure of stability.

"It is currently our expectation that we can maintain freight rates at the level we have reached now for the rest of the year," said Smedegaard.

A.P. Moller-Maersk raised its forecast for group net profit, excluding impairment losses and divestment gains, to approximately $3.5 billion, up from the previous forecast of $2.9 billion. Its net profit forecast remains unchanged at $3.3 billion.

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