Maersk profit up 16% on higher oil pricesStaff Writer | May 11, 2017
A.P. Moller-Maersk A/S reported a 16% rise in first-quarter net profit as a higher oil price bumped up profits at its energy business but higher bunker-fuel costs weighed heavily on its shipping unit.
Maersk Average freight rates increased 4.4%
Average freight rates increased 4.4% and revenue improved by 10% compared with a year earlier, but the average bunker price increased 80%, it said.
Maersk Oil saw profits boosted by an average oil price in the quarter of $54 a barrel compared to $34 last year, while cost reductions and lower exploration costs and a one-off tax of income also contributed.
The group's net profit for the quarter ended Mar. 31 was $245 million, compared with $211 million a year earlier. Revenue rose 5% to $8.96 billion.
Analysts had expected a net profit of $204 million on revenue of $9.13 billion, according to a poll by FactSet.
A.P. Moller-Maersk still forecasts full-year underlying profit above the $711 million achieved in 2016 with gross capital expenditure still seen at $5.5 billion-$6.5 billion.
The Hamburg Süd acquisition is progressing as planned toward a closing in the fourth quarter, the company said. ■