The largest shipping company in the world AP Moeller-Maersk profit collapsed with 84% in 2015, after oil division was hit by lower energy prices and restructuring, while shipping division is squeezed between sluggish growth in trade and overcapacity. The company reported net profit of 0.791 billion USD, compared to 5.02 billion USD an year ago. The results remained below the average forecast of analysts for profit of 3.7 billion USD. The negative financial report is mostly due to the single write-off of 2.6 billion USD oil assets from oil division, part from restructuring and impairment of Maersk Oil business.
“Given our expectation that the oil price will remain at a low level for a longer period, we have impaired the value of a number of Maersk Oil’s assets. We will continue to strengthen the group’s position through strong operational performance and growth investments”, said AP Moller-Maersk chief exclusive, Nils Smedegaard Andersen.
The profit of the shipping company Maersk Line amounted to 1.3 billion USD, compared to 2.3 billion USD an year earlier. The port operator APM Terminals profit decreased with 27% to 0.654 billion USD.
In October 2015, Maersk launched cost reduction program for top divisions, attempting to find a solution of delayed shipping market, overcapacity and low oil prices. AP Moeller-Maersk also reduced forecasts for 2016, announcing that the net profit will be significantly under the last year. Maersk Line profit will also be significantly below the level of 2015. Maersk Oil will report a loss this year, the company said. Division currently achieves profitability when prices are in the range between 45 dollars and 55 dollars per barrel, said another company.