Maersk Oil 2010 Profit Soars on Oil Price Increase (Denmark)

Maersk Oil made a profit for 2010 of USD 1.7 billion compared to a profit of USD 1.2 billion in 2009. The main reason for the improved result was a 29% increase in the average oil price.

The oil production declined, but “we are making significant investments to replace our oil reserves,” says Nils S. Andersen.

The Group in general invests in future growth. In the last couple of months alone, it has invested in oil fields in Brazil (USD 2.4 billion), new drilling rigs (1.2 billion) and new, standard-setting container ships (USD 1.9 billion).

Maersk Drilling improved its profits significantly, from USD 212 million to USD 399 million. The Group is investing in Maersk Drilling to build scale of business, keep the fleet up to date and stay in the lead as regards standard of equipment.

Maersk FPSOs made a loss of USD 266 million compared to a loss of USD 30 million affected by, among other things, lower production.

“Our focus is on growth, and thanks to our strong financial position we are able to make these investments. This underlines the necessity of our focus on maintaining and increasing financial flexibility,” says Nils S. Andersen.

“Looking ahead, we see strong potential in growth markets, where the number of middle-income consumers is booming. In 2011, we will focus the main part of our attention and investments in these markets, where we already have a strong presence,” says Andersen.

[mappress]

Source:Maersk Oil, February  23, 2011;