Global economic downturn hits conglomerate AP Moller-Maersk

Aug 21, 2009, 7:49 GMT

Copenhagen - The global economic downturn, combined with a drop in global trade, impacted Danish shipping and oil concern AP Moller-Maersk's profits in the first half of 2009, the group said Friday.

Turnover for the six-month period of January to June, measured in dollars, declined by 25 per cent year-on-year to 22.7 billion dollars while the conglomerate reported a net loss of 540 million dollars.

In the corresponding 2008 business period, the group posted a net profit of 2.4 billion dollars.

The group that operates Maersk Line, the world's biggest container shipper, said ship transports fell 7 per cent during the half year, while average freight rates were 30 per cent lower year-on-year.

The group's container fleet comprised 501 vessels, of which 247 were chartered.

The outlook said there was 'considerable uncertainty' relating to changes in the global economy and its possible effects on container freight rates, the exchange rate for the dollar and oil prices.

For the entire year of 2009, the group expected a result in line with the first half-year.

The group was 'financially strong' and had carried out cost-saving measures, chief executive Nils S Andersen said in a statement.

AP Moller-Maersk Group operations include sea transport, offshore oil and gas activities and retail and shipyard operations.

It recently said it would phase out its shipyard in Odense by 2012.

Year-on-year, the oil price was 52 per cent lower, but production increased 8 per cent. The group has production facilities in Qatar, the Danish section of the North Sea, Britain and Algeria.