Business News
Lower freight prices weigh on Denmark's Moller-Maersk
Nov 9, 2011, 9:49 GMT
Copenhagen - Danish shipping and oil group AP Moller-Maersk Wednesday said its third-quarter net profit dropped to 371 million dollars from 1.6 billion dollars over the same period last year, mainly due to losses in its tanker and container business.
Tough competition and larger vessels plying key trade routes between Asia and Europe weighed on freight rates while fuel prices increased, said the group, which operates Maersk Line, the world's biggest container shipper.
The group said freight prices were not expected to rise in the short-term and its freight business unit was likely to post a loss for the full-year.
Its turnover increased by 9 per cent year-on-year to 15.3 billion dollars.
For the full-year 2011, the group expected 'a fairly satisfactory result,' chief executive Nils S Andersen said in a statement.
The group's total fleet counted 639 container vessels at the end of the three-month period, of which 387 were chartered.
AP Moller-Maersk Group operations include sea transport, offshore oil and gas activities and retail and shipyard operations.
The group said oil and gas exploration costs doubled to 336 million dollars year-on-year.
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