Denmark's Moller-Maersk returns to profit on oil and freight prices

May 12, 2010, 15:17 GMT

Copenhagen - Higher oil and freight prices helped lift first-quarter net profits, Danish shipping and oil giant Moller-Maersk said on Wednesday

The conglomerate posted a net profit of 639 million dollars, compared to a net loss of 373 million dollar for the corresponding business period 2009.

Turnover, measured in dollars, increased by 20 per cent year-on- year to 13.2 billion dollars.

The group that operates Maersk Line, the world's biggest container shipper, said the container shipping market was boosted by growing demand, mainly over restocking, in the United States and Europe.

'Markets have improved, and our efforts are paying off,' chief executive Nils S Andersen said in a statement, adding that the group expected its container business to post a profit for 2010.

The outlook mentioned uncertainty over freight rates, the exchange rate for the US dollar and developments in the global economy.

Average freight rates were 18 per cent higher year-on-year. The group said it expected global cargo volumes to grow at least 5 per cent in the year.

The group's total fleet counted 539 container vessels, of which 289 were chartered.

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

Year-on-year the oil price was 70 per cent higher but production decreased 20 per cent, mainly over a lower production share in Qatar. The group also has production in the Danish section of the North Sea, Britain, Algeria and Kazakhstan.