In International Shipping News 17/08/2016
Maersk Line posted an operating loss of -$111 M and a net loss of -$151 M for its container shipping business in the second quarter of 2016. The ocean carrier’s losses have dragged down overall net profits of the A.P. Møller-Maersk Group to only $118 M for the quarter, compared to $1,086 M in the same quarter last year.
The company provided no guidance on the progress of its strategic and structural review, initiated in June, but aimed at making certain that the group remains “strong and financially viable” while ensuring a clear growth path. Maersk expects to disclose details of the review at the end of September, and the process focuses on the question whether “the group should stay as it is, or whether it should be split up”.
In June this year, the appointment of Søren Skou as the Group CEO, provided some clues on the group’s future direction. Skou has solid container shipping credentials and he still holds the concurrent role as CEO of Maersk Line. This clearly suggests that container shipping will remain central to the APM-M Group’s new strategy, even as it grapples with strong headwinds in all of its key business units, including ports, logistics, oil and gas production and drilling, tankers, and offshore marine services.
What is less clear is whether APM-M’ two other container shipping related units, APM Terminals (APMT) and Damco, could be spun-off or divested entirely, following the strategic review.
Source: Alphaliner
