Maersk Group turns in 2012 profit of $4 billion

FEBRUARY 22, 2013 — Maersk Group CEO Nils S. Andersen has something to smile about. In its 2012 Annual Report, released today, the Group reports a profit for 2012 of $4.0 billion, slightly higher than the $3.7 billion forecast in its November 9, 2012 outlook.

Profit was positively affected by the settlement of an Algerian tax dispute in Q1 of $899 million, combined with improved volumes, rates and unit costs for Maersk Line. Profit was negatively affected by a decline in Maersk Oil's share of production and impairment losses of net $405 million of which $268 million related to Maersk Tankers in Q3. Divestment gains were $636 million with the divestment of two FPSOs, Maersk LNG and Maersk Equipment Service as the largest transactions. Revenue decreased slightly to $ 59.0 billion.

Maersk Line made a profit of $461 million, compared with a 2011 loss of $553 million and a ROIC of 2.4 percent (negative 3.1 percent). The result was positively affected by improved volumes, rates and unit costs. The average freight rates were 1.9 percent higher at 2,881 $/FFE and volumes increased by 5 percent to 8.5 million FFE . Bunker consumption per FFE was reduced by 11 percent and headquarters headcount was reduced significantly.

Maersk Line announced and implemented significant general rate increases on most trades backed by active capacity adjustments in the form of slow steaming, scrappings, idling and blanked sailings. The total fleet capacity increased by 4 percent to 2.6 million TEU (2.5m TEU). The capacity growth in owned fleet was partly offset by redelivery of time charter vessels. Maersk Line maintained its market share for the full year.

Cash flow from operating activities was $1.8 billion and cash flow used for capital expenditure was $3.6 billion.

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