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Maersk Group sees Q3 profit almost halved as revenue fall

Maersk Group sees Q3 profit almost halved as revenue fall
Denmark’s Maersk Group has delivered lower profit in the third quarter, impacted by the lower oil price and lower average container freight rates, which were down 51% and 19% respectively compared to the year-ago period.

Profit for the third quarter ended 30 September 2015 was reported at $778m compared to the gain of $1.5bn in the previous corresponding period.

“The decline of nearly 50% compared to last year was primarily due to container freight rates deteriorating to a historically low level, especially in the later part of Q3, and profits in Maersk Oil being impacted by the lower oil price,” said group ceo Nils Smedegaard Andersens.

Revenue also declined by 16.9% year-on-year to $10.11bn predominantly due to lower oil prices and freight rates. Operating expenses, however, decreased by $1.1bn mainly due to lower bunker prices and cost savings initiatives.

Its container arm Maersk Line registered a third quarter profit of $264m, down from $685m in the year-ago period.

Maersk Oil made a profit of $32m during the quarter, a significant drop from the profit of $222m in the same period of last year, due to softer oil proces.

APM Terminals also posted a 49.3% year-on-year fall in profit to $175m due to a sharp decline in import volumes into oil producing countries in West Africa, Russia and Brazil.

Looking ahead, the group expects an underlying result for 2015 of around $3.4bn, based on an underlying result in Maersk Line of around $1.6bn.