Maersk to establish new business unit
A.P. Moller-Maersk has announced in its Q2 2013 report that it will establish a core business unit called ‘Services & Other Shipping’.
Planned to be launched by January 2014, the unit will comprise of Maersk Supply Service, Maersk Tankers, SVITZER and Damco with a combined target of achieving a net operating profit after tax (NOPAT) of US$0.5 billion by 2016.
In its interim report Q2 2013 the group’s overall profits were US$856 million in Q2 2013 – down from US$965 million in Q2 2012 due to lower freight rates and oil production.
While the group’s overall profits were down, its major business units - Maersk Line; Maersk Oil; APM Terminals and Maersk Drilling – all recorded strong results.
Maersk Line delivered a profit of US$439 million (US$227 million) and a return on invested capital of 8.5% (4.6%). This positive result came from a reduction in total costs by US$897 million compared to Q2 2012 of which 35% (US$310 million) was due to lower bunker consumption and 29% (US$263 million) was due to lower bunker price.
Maersk Oil delivered a profit of US$249 million (US$468 million) and a ROIC of 15.4% (26.4%).
APM Terminals profit rose to US$179 million (US$160 million) while ROIC decreased to 12.8% (14.3%), mainly attributable to a 29% increase in invested capital to US$5.6 billion year-on-year reflecting continued high investment level.
Maersk Drilling profit increased by 52% to US$150 million (USD$98 million), due to higher operational uptime in 2013.