Moller-Maersk Upgrades 2014 Outlook Following Stellar Results

Moller-Maersk Changes 2014 Outlook Following Stellar Q2 Results

Denmark’s shipping and oil group A.P. Moller-Maersk has upgraded its 2014 outlook following the release of Q2 results revealing that the company’s profits nearly tripled. The Group says that the earnings increased following the sale of majority stake in its retail business, higher freight volumes and lower costs.


The group delivered a profit of USD 2.3bn (USD 856m) and return on invested capital of 18.6% (7.4%) for Q2 2014.

USD 2.3bn

profit in Q2 2014

The group expects a result for 2014 significantly above the 2013 result of USD 3.8bn. The underlying result is now expected to be around USD 4.5bn, an upgrade from previous expectation of around USD 4.0bn (USD 3.6bn) when excluding discontinued operations, impairment losses and divestment gains.

Maersk Line revised its expected result from being above 2013 (USD 1.5bn) to being significantly above the 2013 result following a strong financial performance in the first half of 2014. The global demand is still expected to grow by 4-5%.

Maersk Oil now expects a loss at a level of USD 0.7bn for the full year 2014 including the USD 1.7bn asset impairment in Brazil. The expectation for the underlying result is revised upwards to be in line with 2013 (USD 1.0bn) versus previous expectations which were below the 2013 result. This is based on an average oil price for the year of USD 108 per barrel (previous expectation was USD 104 per barrel). Exploration costs are expected to be below USD 1.0bn for the full year.

APM Terminals estimates an underlying result above 2013 (USD 708m), instead of  last reported result above 2013 (USD 770m).

Maersk Drilling still expects a result below 2013 (USD 528m) due to planned yard stays and high costs associated with training and start-up of operation of six new rigs.

Services & Other Shipping should achieve an underlying result around last year (USD 294m). The previous expectation was a result above 2013.

“The group achieved a very satisfactory result for first half of 201 4 with underlying profit increasing 42% to USD 2.4bn, mainly driven by Maersk Line, APM Terminals and Maersk Oil.

As result of the good progress in delivering on our group priorities and the solid financial performance across the group, which has been achieved in challenging markets, we upgrade the outlook for the group result to be around USD 4.5bn for 201 4.

Due to the current strong financial situation, the Board has decided to buy back shares of USD 1bn within the coming 1 2 months,” said Group CEO Nils S. Andersen.

[mappress]
Press Release; August 19, 2014