Shipping and logistics giant AP Moller-Maersk experienced its first ever loss in 2009 when the Danish company posted a USD 1.02bn loss, compared with a profit of USD 3.46bn in 2008.
Group CEO Nils .S. Andersen said that while the loss was significant, 2009 had been an extraordinary year with historically low rates and demand. “We managed to limit the loss by saving about USD 2bn and we will continue to strengthen our competitiveness even further,” he said.
In 2009, the AP Moller – Maersk Group was significantly negatively affected by the global economic crisis. Freight rates for the Group’s container activities were 28 percent lower than in 2008, resulting in a negative segment result of USD 2.1 billion for container activities. Tanker rates were also substantially lower than in 2008. The average price of crude oil was 36 percent lower in 2009 than in 2008, while the Group’s share of oil and gas production was at the same level as in 2008.
The group had last year also gone to the markets to raise money to repay money owing to banks.
The Danish shipping giant raised USD704 million in two bond issues. The issue was listed on the Luxembourg Stock Exchange and was placed by Danske Bank, Nordea and Skandinaviska Enskilda Banken.
The money was used to repay long-term debt to banks and for general corporate purposes, with the banking facilities thus remaining open as liquidity buffers, said AP Moller-Maersk.
In September the Danish company raised USD1.6 billion from a share sale to institutional investors in the UK, Scandinavia and the US and this was followed by a USD1.15-bn issue the following month. At that time AP Moller-Maersk spoke of using the money raised to fund acquisitions.
However, it says that 2010 will be more favourable, saying that “in the container shipping market, a 7-10 percent addition of tonnage is expected for the global container fleet while cargo volumes are expected to rise by 3-5 percent in 2010 relative to 2009 and freight rates are also expected to rise.
This will lead to a significant improvement in results if the level of vessels taken out of service is sustained. However, rates are not expected to lead to an acceptable return in 2010.
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