Maersk Line, NOL see profits obliterated

As its container shipping activities plunged, AP Moller-Maersk posted its worst ever quarter, reporting a net loss of US$373m, compared with a profit of just over US$1bn in the corresponding three months of 2008.

In a period covering the most difficult trading conditions liner shipping has ever experienced, Maersk Line, Safmarine and related businesses lost US$559m after tax, on 27% less revenue of US$4.9bn, against a profit of US$80m a year earlier.

NOL also suffered a sharp reversal, with a first quarter net loss of US$245m compared with a profit of US$121m in the same period of 2008.

Revenue from container shipping was down 36% to US$1.3bn as NOL’s liner shipping division, APL, saw volumes drop by 27% to 962,000 teu.

Average revenue per box was down 16%, with chief executive Ron Widdows warning that the company anticipated adverse business conditions for the rest of the year and expected to post “a significant full year loss”.

The message was much the same in Copenhagen, where AP Moller-Maersk chief executive Nils Andersen would not rule out the possibility of a negative result for 2009.

A further US$1bn of savings will be sought across the business, with more job losses a possibility.

The headcount at Maersk Line has already been cut by 20% since early 2008.

The world’s largest container line transported 2.6m teu in the first quarter, a decline of 14% on the previous year.

Overall, Maersk said it maintained market share, and Mr Andersen pledged to protect its customer base without embarking on a rates war.

“We feel we have a competitive pricing structure,” he told Lloyd’s List.