However, the Danish shipping conglomerate’s ocean carrier subsidiary, Maersk Line, recorded a $66 million loss for the quarter.
A.P. Moller-Maersk, the Danish shipping conglomerate that includes transportation and logistics companies Maersk Line, APM Terminals and Damco, as well as several companies involved in the oil and gas industry, recorded a $253 million profit for the first quarter of 2017, up 12.9 percent from the first quarter of 2016.
Revenues totaled $9 billion for the quarter, up 5 percent year-over-year, A.P. Moller-Maersk said.
Maersk Line
The world’s largest ocean carrier, Maersk Line, recorded a loss of $66 million for the first quarter of 2017, compared to a profit of $37 million for the first quarter of 2016.
Revenues totaled $5.5 billion, up 10.4 percent year-over-year, driven by a rise in volumes and average freight rates.
During the quarter, Maersk Line carried 2.6 million FEUs, up 10.2 percent from the same period in 2016, thanks in part to improved demand, but also reflecting an increased market share, maintained from the second half of 2016. Volumes primarily increased on the North America and West Central Asia trades.
Meanwhile, the company’s average freight rate totaled $1,939 per forty-foot container (FEU) for the quarter, rising 4.4 percent year-over-year. Maersk said the increase was driven by a 23 percent year-over-year boost on the East West trades, particularly from Asia to Europe, while North American rates were roughly on par with last year.
By the end of the first quarter, Maersk Line had a fleet of of 639 vessels – 284 owned and 355 chartered – compared with a fleet of 605 vessels – 287 owned and 318 chartered – at the end of Q1 2016.
Looking ahead to the remainder of the year, Maersk Line’s acquisition of German ocean carrier Hamburg Süd is progressing as planned and is expected to close in the fourth quarter, subject to regulatory approvals, A.P. Moller-Maersk said.
Maersk Line is acquiring the north-south specialist from the Oetker Group for 3.7 billion euros (U.S. $4 billion) on a cash and debt-free basis. A syndicated loan facility has been created to fully finance the acquisition.
Antitrust authorities in the United States have approved the acquisition, and the European Commission has granted conditional approval, provided Hamburg Süd withdraws from five trade-route specific vessel sharing agreements.
Maersk Line also intends to divest Brazilian carrier Mercosul to secure approval from the Brazilian competition authorities.
Overall, the Hamburg Süd acquisition will deliver substantial growth in revenues, volumes and market share, as well as operational synergies of $350 million to $400 million per year from 2019, A.P. Moller-Maersk said.
APM Terminals
APM Terminals (APMT), the Maersk Group’s port terminal operating arm, recorded a profit of $91 million for the first quarter of 2017, a 15.7 percent year-over-year decrease.
APMT’s revenues for the quarter rose 4.8 percent to $1 billion compared with the corresponding 2016 period.
During the quarter, APMT handled 9.4 million TEUs, up 8 percent year-over-year, primarily due to acquiring Grup Maritim TCB’s volumes, A.P. Moller-Maersk said.
In addition, APMT Lazaro Cardenas, Mexico launched during the quarter. The terminal has the capacity to receive the world’s largest containerships and is the largest semi-automated terminal in Latin America
Looking ahead, A.P. Moller-Maersk said, “The new slot purchase agreement with Hamburg Süd will have a positive volume impact for APM Terminals.”
Damco
Forwarder and logistics subsidiary Damco recorded a loss of $8 million for the quarter, compared to a profit of 2 million for the first quarter of 2016.
Revenues totaled $612 million, ticking up 2.7 percent year-over-year, resulting from volumes growth in supply chain management, airfreight and ocean freight.
