Posted on February 9, 2017
2016 was a difficult year, with headwinds in all our markets. It was also a year when we decided to substantially transform A.P. Moller – Maersk to become a focused container shipping, logistics and ports company with a growing revenue.
A.P. Moller – Maersk delivered an underlying profit of USD 711m in 2016, which was in line with our guidance.
A.P. Moller – Maersk reported a loss of USD 1.9bn negatively impacted by impairments in 2016 of USD 2.7bn in Maersk Supply Service and in Maersk Drilling as a consequence of an expected weaker outlook.
Our priorities for 2017 remain on integrating our Transport & Logistics businesses as well as progressing the work on finding structural solutions for each of our oil and oil-related businesses.
For 2017, we expect A.P. Moller – Maersk to deliver an underlying profit above 2016, with an improvement in underlying profit in excess of USD 1bn in Maersk Line compared to 2016.
A.P. Moller – Maersk delivered an unsatisfactory loss of USD 1.9bn (profit of USD 925m) negatively impacted by post-tax impairments of USD 2.8bn (USD 2.6bn) primarily relating to Maersk Drilling of USD 1.4bn (USD 27m) and Maersk Supply Service of USD 1.2bn (USD 0m). In line with the latest guidance provided in November, the underlying profit came at USD 711m (USD 3.1bn). The return on invested capital (ROIC) was negative 2.7% (positive 2.9%). The free cash flow was negative USD 29m (positive USD 6.6bn including the sale of shares in Danske Bank of USD 4.9bn).
“2016 was a difficult year financially, with headwinds in all of our markets. However, it was also a year when we decided to substantially transform A.P. Moller – Maersk for the future. We have set a new course that over the next few years will lead A.P. Moller – Maersk to become a focused container shipping, logistics and ports company with the aim of growing revenue again.
We delivered an underlying profit of USD 711m, in line with guidance but clearly unsatisfactory. The main driver of the underlying result was a loss in Maersk Line. A.P. Moller – Maersk reported a net loss for the year of USD 1.9bn impacted by impairments totalling USD 2.7bn in Maersk Drilling and Maersk Supply Service as a consequence of significant over-supply and reduced long-term demand expectations.
As communicated at our Capital Markets Day in December, our top priorities for 2017 remain integrating our Transport & Logistics businesses, taking out cost in APM Terminals and Damco, closing the Hamburg-Süd acquisition, as well as progressing the work on finding structural solutions for each of our oil and oil-related businesses.
For 2017, we expect A.P. Moller – Maersk to deliver an underlying profit above 2016, mainly driven by an improvement in underlying profit in excess of USD 1bn in Maersk Line compared to 2016,” says Maersk Group CEO Søren Skou.
Source: MAERSK
