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Maersk defies analysts with unexpected loss, yet shares gain

By Iain Gilbert

Date: Wednesday 16 Aug 2017

Maersk defies analysts with unexpected loss, yet shares gain

(ShareCast News) - Danish transport and logistics group AP Moller Maersk saw its shares lift Wednesday after its chief executive Soren Skou, painted an optimistic future for the company.
Maersk's energy arm had been hindered by low oil prices, while its shipping business had suffered from dropping prices due to lessened global trade that created a slew of rival ships available for hire.

Skou said the container shipping industry was showing signs of recovery this year as freight rates started to rise and the shipping businesses fundamentals were the strongest seen since 2010.

The group reported a net loss of $264m over the half, significantly undershooting the $507m net profit that analysts polled by Reuters had forecast.

Maersk said the loss was primarily due to impairment charges of approximately $700m in its terminal and tanker business, and the loss of five contracts in the first half of the year.

It also warned that it would be hit with a bill somewhere in the vicinity of $200-300m in the third quarter as a result of a cyber-attack that disrupted shipping operations for several weeks in June.

The company maintained its forecast of a 2-4% rise in demand for container transportation over the backhalf of 2017.

EBITDA was $2.06bn, in line with the $2.05bn predicted by analysts.

As of 1700 BST, Maersk stocks had moved forward 2.37% to DKK 1,390.00.

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