The net profit of A.P. Moeller Maersk dropped by 44% yoy in Q3 2016 to 438 million USD, staying below the market expectations and analysts forecasts. During the reported period, the revenues of the group slid by 9% yoy to 9.2 billion USD. The decrease in financial performance of Maersk Group is mainly due to a fall in freight rates (an average of 16%) and low trend of oil prices (-8%), which affected the performance of Maersk Line and Maersk Oil, as well as lower rates for Damco and Maersk Tankers.
The container shipping operator Maersk Line reported net loss of 116 million USD in Q3 2016, against the net income of 264 million USD an year earlier. The revenue of the shipping line decreased by 11% yoy to 5.4 billion USD, at average charter rate of 1,811 USD per FEU compared to 2,163 USD per FEU during the same period last year, which was partially offset by the 11% yoy traffic increase to 2.7 million FEU.
The oil and gas division of the group, Maersk Oil, reported profit increase by 4.5 times to 145 million USD. The production volume remained at last year’s level and amounted to 295,000 barrels per day, while the exploration expenses on deposits decreased by 30% to 57 million USD.
In late September, A.P. Moeller Maersk released plans to split off business to transport and energy units, concentrating to the shipping business.