Maersk strengthened by crisis
SHIPPING: While shipping markets as a whole have experienced a total collapse in the fourth quarter of last year, it looks as if A.P. Moller-Maersk has sailed relatively safely through the crisis, which offers good promises for the future.
Unlike many other shipping companies, Maersk has been relatively careful not to be buying large amounts of new ships. In addition, the many business areas of the conglomerate, make Maersk far better prepared to handle the economic pressure of 2009 and 2010 compared to several of the shipping competitors, who are profiting from shipping exclusively
"As everything is eroding at the moment, Maersk's structure shows its true value. Maersk has at the same time been reluctant in ordering new ships compared to competing shipping companies. The company will therefore be very strong compared to the competitors and will increase speed again rapidly, when the fog of the financial crisis disperses", says Maersk analyst Christian Nagstrup from Jyske Bank.
"There are many others, who suffer significantly more than Maersk, and that will be strengthened by the crisis. Many competitors have a real fear of overcapacity and that places pressure on their profits, because they have no other financial areas to rely on", says analyst in Jyske Bank Jacob Pedersen.
At ABG Sundal Collier they expect that a large consolidation is likely to happen within the shipping business, especially in containershipping, in near future.
"Maersk has a size, a readiness
and relatively stabile cash flow,that gives the company a good position in a possible consolidation and which makes it possible for them to participate actively when it happens", says shipping analyst Lars Heindorff from ABG Sundal Collier.
Source: business.dk
