Maersk Line delivers a higher than expected profit

Container shipping: Maersk Line aims to improve its competitiveness through unit cost reductions and the new 2M alliance in 2015

Maersk Line made a profit of USD 2.3bn (USD 1.5bn) and a ROIC of 11.6% (7.4%) in 2014. The underlying profit was USD 2.2bn or 50% higher than last year (USD 1.5bn). The EBIT margin gap to peers was estimated at around 9%, which was significantly above the 5% ambition level. The achievement came from 5.4% lower unit costs mainly due to improved network efficiencies and lower bunker price. Recognised freight revenue was USD 25.0bn (USD 23.7bn) and other revenue was USD 2.4bn (USD 2.5bn).

Efficiencies were achieved through increased volumes in line with market as well as continued vessel network optimisation and active capacity management. Average freight rates decreased by 1.6% to 2,630 USD/FFE (2,674 USD/FFE) and volumes increased by 6.8% to 9,442k FFE (8,839k FFE). Bunker consumption in kg/FFE was reduced by 7.9% and bunker prices decreased by 5.7%.

To minimise the impact of the low and volatile freight rate environment, Maersk Line continued to absorb capacity by active capacity management in the form of idling, slow steaming and blanked sailings. Maersk Line increased the fleet capacity to 2.9m TEU (2.6m TEU) by end of 2014 mainly due to delivery of 11 Triple-E vessels. Five Triple-E vessels suited for the Asia-Europe trade are on order for delivery during first half of 2015. No newbuilding orders were placed during 2014.

Nils Smedegaard Andersen, CEO A.P. Møller – Mærsk A/S states: „We are very satisfied with the result for 2014 where we achieved the highest ever profit of USD 5.2 bn. Despite challenging market conditions we saw good progress in underlying performance across the Group. Maersk Line maintained its lead on the rest of the industry and APM Terminals delivered significant improvements. Maersk Drilling executed on fleet renewal programme according to plan, while Maersk Oil increased entitlement production in line with expectations. APM Shipping Services‘ underlying result came in lower than expected, primarily due to the result in Damco.

Maersk Line 2014 figures:

Transported volumes (FFE in ‚000): 9,442 (2013: 8,839)

Average freight rate (USD per FFE): 2,630 (2013: 2,674)

Unit cost (USD per FFE incl. VSA income): 2,584 (2013:2,731)

Average fuel price (USD per tonne) 562 (2013: 595)

Maersk Line fleet, owned: 274

Maersk Line fleet, chartered: 336

Fleet capacity (TEU, ‚000): 2,946 (2013: 2,631)

www.maersk.com

Quelle: LogEastics
Portal: www.logistik-express.com