Maersk profit of 2,5 billion dollar in 1H

"The first half of 2010 has been very satisfactory for the group", says Nils Smedegaard Andersen, CEO of A.P. Moller-Maersk.

 During the first half of 2010, the container shipping market was positively affected by stronger activity in global trade. Freight rates and volumes for the Group's container shipping activities have been surprisingly positive, up 31% and 11%, respectively, on the same period of 2009

 The average crude oil price (Brent) was 48% higher than in the first half of 2009, which had a positive impact on the oil and gas activities. On the other hand, the Group's share of oil and gas production was 14% lower than in the same period 2009, mainly due to a lower share in Qatar. The result for the first half of 2010 was positively affected by lower exploration costs and a high take of gas.

 Rates for tankers increased during the first half year but remained at a low level, which affected the result for Maersk Tankers negatively. The Group's offshore activities experienced a continued pressure on rates due to addition of tonnage and uncertainty relating to drilling activity in the Gulf of Mexico. Furthermore, the total result for Tankers, offshore and other shipping activities was negatively affected by impairment losses.

 The Group continues to focus on reducing costs, and further cost-cutting initiatives in the order of USD 500 million have been launched in 2010.

 In the first half of 2010, the Group sold the ownership interest (13.7%) in Sigma Enterprises Ltd., which owns an interest in Yantian International Container Terminal, at a profit of USD 423 million before tax. The sale of Norfolk Holdings B.V. to DFDS A/S was completed on 12 July 2010. Furthermore, an agreement on the sale of Netto UK (Netto Foodstores Limited) to Walmart (Asda Stores Limited) was signed. The transaction is expected to be completed in November 2010.

For the second half year, the Group's Container shipping and related activities are expected to post a positive result at the level of that in the first half of 2010, however with significant uncertainty for especially the fourth quarter.

The Group's share of the daily oil and gas production for the second half year is expected to be somewhat below the first half year, primarily due to planned maintenance in Denmark and Great Britain. Acquired exploration rights in Brazil as well as a general increased exploration activity in Great Britain, etc., are expected to entail increased exploration costs in the second half of 2010 and overall for the full year at the level of that in 2009. The lower share of the daily oil and gas production as well as the increased exploration costs are expected to entail a result for the Group's oil and gas activities in the second half of 2010 considerably below the first half year.

Overall expectations for the A.P. Moller - Maersk Group are that the result for 2010 will exceed USD 4 billion (on 8 July 2010 an announcement stated that the result for 2010 will exceed the 2008-result which was USD 3.5 billion corresponding to DKK 17.6 billion at the time). Expectations are based on retention of the present level for freight rates, oil prices and USD exchange rate and are excluding expected gain in the order of DKK 4.6 billion from Dansk Supermarked A/S' sale of Netto UK (Netto Foodstores Limited). The sale is subject to approval by the British competition authorities. The total consideration and the accounting gain may be reduced dependent on the extent of regulatory remedies required in order to obtain approval from the British competition authorities.

The outlook for 2010 is subject to considerable uncertainty, not least due to developments in the global economy. Specific uncertainties relate to the container freight rates, transported volumes, the USD exchange rate and oil prices.

Source: A. P. Moller - Maersk / maritimedanmark.dk