Maersk expect significantly lower result
The profit for the year was USD 3,462 million corresponding to DKK 17,638 million (2007: USD 3,422 million corresponding to DKK 18,631 million), which is in accordance with the expectations. But Maersk expect significantly lower result in 2009.
Operational improvement in most of the Group's business units, well above 2007, although towards the end of the year affected by the global economic slowdown. The net profit for the year was affected by significantly lower profit from Danske Bank and impairment losses on goodwill on shares in Danske Bank and on other non-current assets.
High average oil prices and in total a larger production share affected Oil and gas activities positively and the overall net result was significantly higher than in 2007, despite increased operational and exploration costs, as well as impairment losses due to lower oil prices at the end of 2008.
Operationally, the container activities improved considerably during 2008, while difficult market conditions, especially in the second half of the year, had a negative impact on the profit. Profit before gains on sale of ships, etc. and non-recurring costs relating to streamLINE were slightly above 2007, but still not satisfactory.
Growth in revenue, profit and operational cash flow from container terminal operations.
High level of activity in the offshore markets and favourable average rates for crude and product tankers. Profit excluding sales gains and impairment losses for Tankers, offshore and other shipping activities was slightly above 2007.
Outlook for 2009
For the A.P. Moller - Maersk Group overall, a result excluding gains on sale of ships, rigs, etc. is expected to be significantly below 2008 which was USD 2.6 billion. With the present market situation it is not realistic to expect gains on sale of ships, rigs, etc. of any significance. The outlook for 2009 is subject to considerable uncertainty, not least due to development in the global economy. Specific uncertainties relate to the development in container freight rates, transported volumes, the USD exchange rate and oil prices.
Container shipping and related activities
Container shipping and related activities showed a moderately positive result slightly above 2007. The result was negatively affected by significantly higher fuel costs, although to a larger extent than previously compensated for by fuel surcharges on freight rates. Increasing freight rates in the first half of the year affected the result positively. Freight volumes in major trades fell in the last quarter of the year, causing rates to develop negatively. The streamLINE initiatives launched in January 2008 entailed non-recurring costs of USD 245 million. The initiatives are expected to take full effect over the coming years.
DKK million Revenue 146,032 Profit for the year after tax 1,051
APM Terminals
APM Terminals increased its revenue by 24% and the profit both before and after sales gains and impairment losses was somewhat above 2007.
DKK mio. Revenue 15,888 Profit for the year after tax 812
Tankers, offshore and other shipping activities
The consolidated profits from Tankers, offshore and other shipping activities were somewhat below 2007, primarily due to lower gains on sale of ships and rigs and impairment losses on the investment in Höegh Autoliners. Maersk Tankers continued the expansion and renewal of its fleet. The profit excluding sales gains was above 2007, but including sales gains somewhat below. The markets for the offshore activities of Maersk Drilling, Maersk FPSOs and Maersk Supply Service were favourable in 2008. The profit excluding sales gains was well above 2007.
DKK million Revenue 27,349 Profit for the year after tax 4,496
Oil and gas activities
Higher average oil price and increased production share generated a profit from the Oil and gas activities that was somewhat above 2007. Exploration activities increased in such areas as the British sector of the North Sea and the Gulf of Mexico.
DKK million Revenue 68,743 Profit for the year after tax 12,032
Retail activity
The Dansk Supermarked Group achieved a moderate increase in revenue. In 2008, the number of stores increased by 99 to a total of 1,270 at the end of 2008. The net result was somewhat below 2007, influenced negatively by lower earnings and negative value adjustment of securities.
DKK million 57,949 Profit for the year after tax 1,552
Shipyards, other industrial companies, interest in Danske Bank A/S, etc.
The Yard Group had a significant negative result, although better than in 2007. The result for Danske Bank A/S was significantly lower than in 2007, affected negatively by provisions against losses on loans and impairment loss on goodwill. After impairment losses on the A.P. Moller - Maersk Group's recognised goodwill on shares in Danske Bank, Danske Bank is included in the income statement of the A.P. Moller - Maersk Group with a negative result of DKK 0.9 billion, compared to a positive result of DKK 3.0 billion in 2007.
DKK million Revenue 7,599 Profit for the year after tax -1,111
Source: maritimedamark.dk
