Maersk Line is doing fine, Q3 earnings rise to US$554m

By Finance

Maersk Line is doing well after posting the results for the Q3 for this year. The profit of the company is US$554, up 11% compared to the last year the same period.  

This result was achieved with the strategy of heavy cost cutting and significant growth in container volumes even 12% lower freight rates. The shipping company earnings for the first 9 months of 2013 are $1.2 billion. The last year earnings of the Maersk Line were only $126 million.

The company's volumes are 10.6% higher for the 3rd quarter compared to the same period last year. This strategy and an average deployed fleet capacity lower by 0.8%, vessel utilisation improved and that is leading to 13% drop in unit costs to $2,622 per 40-foot container from $3,012 compared to 2012. Maersk Line improved fuel efficiency with 8% and 17% drop in bunker prices lead to lower unit costs.

The shipping company believe that the total earnings for 2013 will be $460 million more than 2012.

CEO Nils Andersen said:

"We are very satisfied with the operational result which is a consequence of strong performances in most businesses. APM Terminals delivers strong underlying profit and Maersk Line continues industry leadership on profitability, however Q4 has started with low freight rates which are expected to affect the fourth quarter result,"

A.P. Moller-Maersk is also successful and brought Q3 profit of $1.2 billion, a year ago the same period earnings were only $266 million. The new strategies and innovations in APM Terminals and Maersk Drilling helped a lot the significant growth. 

According to the company "revenue decreased slightly by $81 million impacted by lower average container freight rates and lower oil entitlement production partly offset by higher container volumes."

APM Terminals showed $203 million profit and 4% higher volumes compared to the 2012.

Maersk Line is expecting the total growth of earnings for this year to reach $3.5 billion significant result compared to the last year result.