Low oil prices a curse and a blessing for Maersk
The Maersk Group has published its third quarter report, posting pre-tax profits of 13.75 billion kroner – a 27 percent rise. But while falling oil prices have benefited Maersk Line, which continues to push ahead, they are slowing progress for Maersk Drilling.
“We are very satisfied with the result for the 3rd quarter of 2014 in which we achieved an underlying profit of 1.3 billion US dollars, driven by operational improvements at Maersk Line, Maersk Oil and APM Terminals,” Nils S Andersen, the group’s CEO, said in a press release.
Berlingske Business reports, however, that falling oil prices mean that Maersk Drilling’s huge deep-water oil field Chissonga in Angola might not come to anything. “There are high costs and, for this reason, the project is challenged by an oil price of 80 dollars [per barrel],” Andersen told Berlingske.
“We will only go further if we can see that the project will be profitable.”
The price of a barrel is currently 82 US dollars. Maersk’s prognosis at the beginning of the year was on the basis of a price of 108 US dollars.
“Maersk Drilling’s plans should be re-evaluated,” Andersen said. “The low oil price means that there can be less demand for rigs in deep water.”