Maersk third quarter revenues increase 17pc to $41.4 billion

THE owner of the world`s biggest container shipping line, Denmark`s AP Moller Maersk group, suffered a third quarter profit loss of US$700 million to $4.2 billion while revenue increased 17 per cent to $41.4 billion year on year.

The revenue gain was attributed to higher freight rates and higher oil prices that reflected well on the results of the group`s petroleum business.


"The result is exceptional, and we are very satisfied," said group CEO Nils Andersen. "Our container business has improved and is ahead of competition on profitability. We are ready to seize opportunities, especially in emerging markets."


Profit from container shipping and related business came to $2.25 billion. The result was positively affected by an increase in freight rates of 34 per cent, a seven per cent increase in volume and substantial savings per unit, said a company statement.


APM Terminals` segment revenues were $668 million, positively affected by gains on sale of an ownership interest in Sigma Enterprises Ltd. The number of containers handled increased three per cent despite discontinued activities at six terminals. The remaining terminals had an eight per cent increase in volume.


The segment result for the group`s oil and gas activities was $1.3 billion, mostly because of a 35 per cent increase in oil prices to $77 a barrel. The increase more than compensated for a 17 per cent decline in the group`s share of oil and gas production to 103 million barrels, said the company.


The group is now expecting revenues of $5 billion for the full year, a figure upwardly revised from the $4 billion cited in the August forecast.


The group also expects a seasonal decline in both volumes and freight rates for the container activities towards the end of the year and consequently a somewhat lower result in the fourth quarter compared to previous quarters.