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News ID: 77192 |
Publish Date: 10:35 - 11 November 2017
Q3, 2017:

Maersk Line $220m in the Black, APM Terminals in the Red

The world’s largest container line, Maersk Line, was back in the black in Q3 despite the impact of a cyber attack, but APM Terminals fell into the red as overcapacity took its toll.

Maersk Line $220m in the Black, APM Terminals in the Red
Maersk Line reported a $220m net profit for Q3 of 2017, compared to a $116m loss in the same period a year earlier, MANA correspondent reported.
Revenues for the third quarter of 2017 were up at $6.13bn from $5.36bn a year earlier. For the first nine months of 2017 net profit was $493m compared to a $230m loss of the same period a year earlier.
The Q3 profit came despite a $250 - $300m impact on profitability of AP Moller Maersk’s transport and logistics division, from the June NotPetya cyber attack, of which it said the “vast majority” related to Maersk Line in Q3.
While the container line business was back in the black it was different picture over at the group’s terminal segment APM Terminals. In a switch in fortunes between the two sectors APM Terminals reported a net loss of $267m for Q3 this year compared to a $131m profit in the same period a year earlier. The terminals business was hit by challenging market conditions and overcapacity.
Revenues for APM Terminals for Q3 2017 fell slight to $1.02bn against $1.06bn a year earlier. For the first nine months of 2017 APM Terminals reported a net loss of $276m, compared to a profit of $351m a year earlier.
In its container line business Maersk Line, the Danish company said that freight rates in Q3 2017 were 14% higher than the same period a year earlier, although 2% down on Q2 this year, reflecting a softening in the market.
“Global container demand remained solid and grew around 5% in Q3 2017 compared to same quarter last year. While demand growth is high compared to the past couple of years, it was still lower than the first half of 2017 and growth is expected to slow further towards the end of the year,” the company said.
Maersk noted that modest ordering of newbuildings in the container sector for several quarters had changed in Q3 as several orders were placed for 20,000 teu plus vessels.
It said its acquisition of Hamburg Sud was proceeding as planned and was expected to be completed in Q4 this year.
Meanwhile in the ports business APM Terminals was hit by $374m in impairments on terminals in “markets with challenging conditions”. Average terminal utilisation was 64% in Q3 2017 compared to 70% a year earlier.
Commenting on market conditions the company said: “The customer landscape on the East -­West net­work shows signs of stability with the networks of major alliances in place. While APM Terminals lost some services following the changes in alliances, volumes are now positively impacted following the extension of 2M with HMM, and Hamburg Süd participation on some services.”
Of the other business in the transport and logistics portfolio, logistics arm Damco also fell into the red in Q3 with a $6m loss, Switzer reported a $35m profit, and Maersk Container Industry an $8m profit.
As a whole the transport and logistics reported a $6m net profit for Q3 2017 compared to a $93m profit a year earlier.
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