Robust first quarter for Maersk, box line back in the black

First quarter profit was down from 2012's $1.2bn, however last year's number was boosted by the settlement of an $899m tax dispute in Algeria.

Maersk Line returned similar year-on-year revenues of $6.3bn for the first quarter, but saw an improved bottomline as profit reached $204m, up from a $599m loss in the same period of the previous year. With freight rates rising by 4.7% and volumes decreasing 4%, efficiency and cost reduction contributed most of the change in fortune.

"Maersk Line is much more competitive and has gained strength to deal with the challenging shipping markets," commented group ceo Nils Andersen.

Profit for 2013 at Maersk Line is expected to be an improvement on 2012, owing to a strong first quarter and 2-4% improvement in global demand.

Reduced volumes in Western Europe and North America for APM Terminals were offset by improvements in high growth markets, bringing first quarter profit to $166m. APM Terminal's handling volumes held steady whilst the global market increased by 3%. Maersk expects its terminal arm to grow ahead of the market in 2013 with support from new terminals and improved efficiency in existing facilities.

A rise in operational uptime boosted profits at Maersk Drilling, with all 16 jack-up rigs, four drillships, 10 drilling barges and its managed semi-sub on contract during Q1 2013, resulting in a profit of $146m for 2013, up from $123m in the first quarter last year.

Maersk's net interest bearing debt reduced by $1.1bn in the period to 13.4bn whilst total equity stood at $39.6bn. The company expects results to be below 2012's $4bn, with the net result in line with 2012's before impairment losses, divestment gains and the Algerian tax settlement gain.

Add Seatrade Maritime News to your Google News feed.