Shipping line Maersk Group has reported a net loss of US$1.9 billion for the past financial year, driven by difficult markets, rate cuts and tight competition.
“We delivered an underlying profit of US$711 million, in line with guidance but it was clearly unsatisfactory. The main driver of the underlying result was a loss in Maersk Line. A.P. Møller – Mærsk A/S reported a net loss for the year of US$1.9 billion impacted by impairments totaling US$2.7 billion in Maersk Drilling and Maersk Supply Service as a consequence of significant oversupply and reduced long-term demand expectations,” said Søren Skou, CEO of Maersk.
The firm reported “headwinds in all of our markets,” but expects profitability to return this year. The firm also notes that despite its losses it managed to gain market share last year, putting it in a better position for growth than many competitors.
“The difficult business environment during the year enabled industry consolidation and a major container carrier went out of business, while Maersk Line continued its cost leadership strategy and gained significant market shares,” Skou added, referring to Hanjin.