Maersk Group announce record $5.2 billion profit
A.P. Møller - Mærsk has this week published its Annual Report 2014. The Group delivered a strong financial performance with a profit of $5.2bn ($3.8bn in 2013). In line with expectations, the underlying profit increased by 33 percent to $4.5bn compared to 2013 and the return on invested capital (ROIC) was 11 percent.
The reported result was positively impacted by the $2.8bn gain from the sale of the majority share of Dansk Supermarked Group and other divestment gains of $600m (USD 145m) partly offset by the net impairments of $3 billion (USD 220m), including $1.7bn on the Brazilian oil assets.
Maersk Group CEO Nils S. Andersen said: “We are very satisfied with the result for 2014 where we achieved the highest ever profit of $5.2bn. Despite challenging market conditions we saw good progress in underlying performance across the Group.
“Maersk Line maintained its lead on the rest of the industry and APM Terminals delivered significant improvements. Maersk Drilling executed on fleet renewal programme according to plan, while Maersk Oil increased entitlement production in line with expectations. APM Shipping Services’ underlying result came in lower than expected, primarily due to the result in Damco.
“With our competitive businesses and healthy balance sheet the Group is well positioned to take advantage of opportunities materialising in a volatile macroeconomic environment. In the continuing efforts to focus our portfolio and share value creation with our shareholders, it has been decided to divest our Danske Bank shares.”
Maersk has pressed ahead in the last year, even setting a new world record along the way. Maersk McKinney Moller, Maersk Line’s iconic Triple E vessel created a record of sailing with the record load of 18,168 TEU from the port of Algeciras, Spain.
Maersk Line also returned Southampton, on England’s south coast, for the first time in five years last week.
In his video interview Group CEO Nils S. Andersen comments on the result and topics like the divestment of the ownership stake in Danske Bank and the impact of the oil price on Maersk Group.
DHL Claim Multi-Sector Collaboration Key to Fighting COVID
Since January, global logistics leader DHL has distributed more than 200 million doses of the COVID vaccine to 120+ countries around the globe. While the US and UK recently rolled out immunisation plans to most citizens, countries with less developed infrastructure still desperately need more doses. In the United Arab Emirates (UAE), which currently has one of the highest per-capita immunisation rates, the government set up storage facilities to cover domestic and international demand. But storage, as we’ve learned, is little help if you can’t transport the goods.
This is where logistics leaders such as DHL make their impact. The company built over 50 new partnerships, bilateral and multilateral, to collaborate with pharmaceutical and private sector firms. With more than 350 DHL centres pressed into service, the group operated 9,000+ flights to ship the vaccine where it needed to go.
With new pandemic knowledge, DHL just released its “Revisiting Pandemic Resilience” white paper, which examined the role of logistics and supply chain companies in handling COVID-19. As Thomas Ellman, Head of Clinical Trials Logistics at DHL, said: “The past one year has highlighted the importance of logistics and supply chain management to manage the pandemic, ensure business continuity and protect public health. It has also shown us that together we are stronger”.
Multisector partnerships, DHL said, enabled rapid, effective vaccine distribution. While international scientists developed a vaccine in record time—five times faster than any other vaccine in history—manufacturers ramped up production and logistics teams rolled out distribution three times faster than expected. When commercial routes faced backups, logistics operators worked with military officers to transport vaccines via helicopters and boats.
In the UAE, the public-private HOPE Consortium distributed billions of COVID-19 doses to its civilians as well as other countries in need by partnering with commercial organisations such as DHL. For the first time, apropo for an unprecedented pandemic, logistics companies made strong connections with public health and government.
“While the race against the virus continues, leveraging the power of such collaborations and data analytics will be key”, said Katja Busch, Chief Commercial Officer DHL and Head of DHL Customer Solutions & Innovation. “We need to remain prepared for high patient and vaccine volumes, maintain logistics infrastructure and capacity, while planning for seasonal fluctuations by providing a stable and well-equipped platform for the years to come”.
How Do We Sustain Immunisation?
By the end of 2021, experts estimate that we need approximately 10 billion doses of vaccines—many of which will be shipped to areas of the world, such as India, South Africa, and Brazil, that lack significant infrastructure. This is perhaps the greatest divide between countries that have rolled out successful immunisation programmes and those that have not. As Busch noted, “the UAE’s significant investments in creating robust air, sea, and land infrastructure facilitated logistics and vaccine distribution, helping us keep supply chains resilient”.
Neither is the novel coronavirus a one-time affair. If predictions hold, COVID will be similar to seasonal colds or the flu: here to stay. When fall comes around each year, governments will need to vaccinate the world as quickly as possible to ensure long-term immunisation against the virus. This time, logistics companies must be better prepared.
Yet global immunisation, year after year, is no small order. To keep reinfection rates low and slow the spread of COVID, governments will likely need 7-9 billion annual doses of the vaccine to meet that mark. And if DHL’s white paper is any judge of success, multi-sector supply chain partnerships will set the gold standard.