Maersk announce healthy $1.2 billion profits for second quarter
The Maersk Group delivered a satisfactory profit in Q2 of USD 1.1bn (USD 2.3bn) negatively impacted by the lower oil price and lower average container freight rates. The return on invested capital (ROIC) was 10.2% (18.6%). The underlying profit was $1.2 billion with decreases in Maersk Line, Maersk Oil and APM Terminals and increases for Maersk Drilling and APM Shipping Services.
“In a quarter impacted by lower average container rates and a lower oil price, the Maersk Group achieved a satisfactory result with an underlying profit of USD 1.1bn (USD 1.2bn) and maintain the expectation of an underlying result of around USD 4.0bn for the year. We reiterate our strategic direction of targeting profitable growth with top-quartile performance and a ROIC above 10% over the cycle in all business units. The turbulence in the oil price has had a negative influence in the oil and offshore markets and countries dependent on oil. This has changed the outlook for Maersk Oil, Maersk Drilling, APM Terminals and APM Shipping Services, where previously announced profit and growth targets will be replaced by plans adapting to the volatile environment. The balance sheet remains strong and the Board has decided to launch a buy-back programme aiming at USD 1bn,” says Group CEO Nils Smedegaard Andersen.
In this video Group CEO Nils S. Andersen comments on a positive result, achieved in a tough environment for all the businesses. He addresses the overall strength of the Group, expectations for shipping and oil activities and the strategy update.