Danish shipping and oil group Moller-Maersk improves results

Aug 29, 2007, 15:02 GMT

Copenhagen - Danish shipping and oil giant AP Moller-Maersk Group on Wednesday posted a 'better than expected net profit' for first half-year 2007, citing sales of ships and rigs.

Pre-tax profit increased 17 per cent to 3.37 billion dollars while net profit was up 33 per cent on the 1.1 billion dollars posted in 2006.

Turnover for the business period increased 15 per cent to 23.3 billion dollars.

Group activities include container shipping, tankers, coasters, offshore, oil and gas activities, retail activity, and shipyards.

The group's container business improved on 2006 but posted a net loss of 168 million dollars.

Lower average oil prices, higher exploration costs and higher production costs impacted the group's oil and gas activities.

Pre-tax profit for the sector in the period was 2.2 billion dollars compared to 2.5 billion dollars in the first half year 2006.

In its outlook for full-year 2007, the group estimated turnover of 50 billion dollars compared to 44.5 billion dollars in 2006.

The forecast was however 'very sensitive to changes in freight rates and volumes, especially in Maersk Line, and in oil prices and exchange rates,' the group said.