Mærsk A/S released Annual Report for 2009
The result for the year was negative by USD 1.0 billion corresponding to DKK 5.5 billion (2008: positive by USD 3.5 billion corresponding to DKK 17.6 billion), which is in accordance with the expectations most recently stated in the Stock Exchange Announcement published on 12 November 2009, reports www.megafishnet.com with reference to Maersk.
· In 2009, the A.P. Moller - Maersk Group was significantly negatively affected by the global economic crisis. Freight rates for the Group's container activities were 28% lower than in 2008, resulting in a negative segment result of USD 2.1 billion for container activities. Tanker rates were also substantially lower than in 2008. The average price of crude oil was 36% lower in 2009 than in 2008, while the Group's share of oil and gas production was at the same level as in 2008.
· Oil and gas activities, APM Terminals, Maersk Supply Service, Maersk Drilling, Damco and the Dansk Supermarked Group yielded positive results despite lower oil prices and lower demand as a consequence of the economic crisis.
· Cost reductions in the range of USD 2.0 billion were achieved in the Group's business areas and group functions in 2009, of which USD 1.6 billion related to container activities. Savings were primarily achieved by restructurings, reducing fuel consumption, optimising networks and renegotiating supplier contracts.
· In 2009, it was decided to phase out shipbuilding activities at Odense Steel Shipyard as existing orders are completed and to sell Norfolkline to DFDS.
· To ensure the long-term funding position, the Group decided in 2009 to diversify its funding sources by placing bonds denominated in euro and Norwegian kroner, yielding gross proceeds of USD 1.8 billion. In addition, the Group sold own B shares corresponding to approximately 5.7% of A.P. Møller - Mærsk A/S' total share capital, yielding gross proceeds of USD 1.6 billion.
The cash flow from operating activities was USD 4.7 billion corresponding to DKK 25 billion (2008: USD 8.5 billion corresponding to DKK 43 billion) - negatively affected by lower earnings.
The cash flow used for capital expenditure amounted to USD 7.9 billion corresponding to DKK 42 billion. (2008: USD 10.3 billion corresponding to DKK 52 billion).
Outlook for 2010
In the container shipping market, a 7-10% addition of tonnage is expected for the global container fleet. Cargo volumes are expected to rise by 3-5% in 2010 relative to 2009 and freight rates are also expected to rise. This will lead to a significant improvement in results if the level of vessels taken out of service is sustained. However, rates are not expected to lead to an acceptable return in 2010.
APM Terminals experienced a continued stabilisation of volumes in the beginning of 2010. The overall volumes are expected to rise moderately in 2010.
The tanker markets have benefited from the cold winter and declining oil stocks in early 2010. However, rates remain unsatisfactory, and the addition of new tonnage combined with weak demand for crude oil and refined products is expected to cause challenging market conditions in 2010.
In spite of rising oil prices and a positive outlook for the oil industry, offshore markets are expected to be negatively affected by excess capacity putting pressure on rates in 2010. Relatively good contract coverage ensures fairly high employment for Maersk Drilling, Maersk FPSOs and Maersk Supply Service also in 2010. However, several rigs and ships are not under contract at the beginning of 2010.
Oil and gas activities are expected to maintain a high activity level with increased investments in exploration in 2010. The Group's entitlement of production for the next four quarters is expected to be lower than in 2009 but on average slightly above the entitlement of production in the fourth quarter 2009.
Overall, the A.P. Moller - Maersk Group is expected to post a modest profit. Cash flow from operating activities is expected to be well above the 2009 level, while cash flow used for investing activities is expected to be well below.
The outlook for 2010 is subject to considerable uncertainty, not least due to developments in the global economy. Specific uncertainties relate to the container freight rates, transported volumes, the USD exchange rate and oil prices.
· In 2009, the A.P. Moller - Maersk Group was significantly negatively affected by the global economic crisis. Freight rates for the Group's container activities were 28% lower than in 2008, resulting in a negative segment result of USD 2.1 billion for container activities. Tanker rates were also substantially lower than in 2008. The average price of crude oil was 36% lower in 2009 than in 2008, while the Group's share of oil and gas production was at the same level as in 2008.
· Oil and gas activities, APM Terminals, Maersk Supply Service, Maersk Drilling, Damco and the Dansk Supermarked Group yielded positive results despite lower oil prices and lower demand as a consequence of the economic crisis.
· Cost reductions in the range of USD 2.0 billion were achieved in the Group's business areas and group functions in 2009, of which USD 1.6 billion related to container activities. Savings were primarily achieved by restructurings, reducing fuel consumption, optimising networks and renegotiating supplier contracts.
· In 2009, it was decided to phase out shipbuilding activities at Odense Steel Shipyard as existing orders are completed and to sell Norfolkline to DFDS.
· To ensure the long-term funding position, the Group decided in 2009 to diversify its funding sources by placing bonds denominated in euro and Norwegian kroner, yielding gross proceeds of USD 1.8 billion. In addition, the Group sold own B shares corresponding to approximately 5.7% of A.P. Møller - Mærsk A/S' total share capital, yielding gross proceeds of USD 1.6 billion.
The cash flow from operating activities was USD 4.7 billion corresponding to DKK 25 billion (2008: USD 8.5 billion corresponding to DKK 43 billion) - negatively affected by lower earnings.
The cash flow used for capital expenditure amounted to USD 7.9 billion corresponding to DKK 42 billion. (2008: USD 10.3 billion corresponding to DKK 52 billion).
Outlook for 2010
In the container shipping market, a 7-10% addition of tonnage is expected for the global container fleet. Cargo volumes are expected to rise by 3-5% in 2010 relative to 2009 and freight rates are also expected to rise. This will lead to a significant improvement in results if the level of vessels taken out of service is sustained. However, rates are not expected to lead to an acceptable return in 2010.
APM Terminals experienced a continued stabilisation of volumes in the beginning of 2010. The overall volumes are expected to rise moderately in 2010.
The tanker markets have benefited from the cold winter and declining oil stocks in early 2010. However, rates remain unsatisfactory, and the addition of new tonnage combined with weak demand for crude oil and refined products is expected to cause challenging market conditions in 2010.
In spite of rising oil prices and a positive outlook for the oil industry, offshore markets are expected to be negatively affected by excess capacity putting pressure on rates in 2010. Relatively good contract coverage ensures fairly high employment for Maersk Drilling, Maersk FPSOs and Maersk Supply Service also in 2010. However, several rigs and ships are not under contract at the beginning of 2010.
Oil and gas activities are expected to maintain a high activity level with increased investments in exploration in 2010. The Group's entitlement of production for the next four quarters is expected to be lower than in 2009 but on average slightly above the entitlement of production in the fourth quarter 2009.
Overall, the A.P. Moller - Maersk Group is expected to post a modest profit. Cash flow from operating activities is expected to be well above the 2009 level, while cash flow used for investing activities is expected to be well below.
The outlook for 2010 is subject to considerable uncertainty, not least due to developments in the global economy. Specific uncertainties relate to the container freight rates, transported volumes, the USD exchange rate and oil prices.
{{countTopicsText}}
{{post.body_processed}}