Denmark: Investments Show Way Forward for Maersk Group

The Group’s strong cash flow and healthy balance sheet make it possible to invest in long term profitable growth of our core businesses in spite of short term market volatility and risks.

In the first half-year of 2011 alone, the Group has executed and committed to new investments of more than USD 12 billion.

“We are investing in a strong and exciting future for the Group and its employees,” says Group CEO Nils S. Andersen.

“We want to strengthen our market positions even further, especially in growth markets, and our focus will primarily be on seven core businesses within two industries, shipping and oil & gas,” says Nils S. Andersen.

Market leaders in shipping

Within the shipping industry, two core businesses – Container shipping and Terminal activities – will have priority for investment in further growth, whereas investments in Maersk Tankers, Damco and Svitzer will be driven by market opportunities.

Container shipping will remain a high growth industry and Maersk Line​ will be the undisputed industry leader – delivering margins and returns ahead of competition. Customer focus combined with an efficient fleet will secure and strengthen competitiveness.

APM Terminals​ aims to be the leading global port operator with financial returns and growth above market and will be a significant contributor to the Groups cash flows and earnings.

Turning the oil production curve

In the oil & gas industry, Maersk Oil as well as Maersk Drilling​ (including Maersk Supply Service) will be prioritised for investment in further growth. Maersk Oil aims to stabilise its production by 2014 and thereafter gradually grow to reach a stable production level at 400,000 boepd (barrels of oil equivalents per day). As a consequence, investments will remain high in the coming years.

Maersk Drilling is executing on the ambition of becoming one of the leading drilling contractors within deep water and ultra harsh environments and is expected to become a significant and stable contributor to Group profits.

Dansk Supermarked Group​ (DSG) is leader in its home market and the Group will maintain its holding. DSG will continue to invest in its core markets and will be financed from its own cash flow.

The Group will maintain the strategic minority holding in Danske Bank.

Maersk LNG will be divested as it lacks the scale to be a leading player.

In line with our strong heritage

Investments will be made with the objective to at least meet the Group’s historical return on invested capital at 10% over the cycle, says Group CEO Nils S. Andersen.

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Source: Maersk, August 29, 2011.