Maersk maintains expectations despite low freight rates

Investment experts had predicted a downgrade

The Danish shipping and oil giant Maersk will maintain its expectations for the year after its second financial quarter showed profits of 7.36 billion kroner after tax.

Despite the low container freight rates, Maersk has created profits of over 17 billion kroner in 2015, which group CEO Nils Smedegaard Andersen has deemed “satisfactory”.

“In a quarter influenced by lower-then-average container freight rates and a lower oil price, the Maersk Group has delivered a satisfactory underlying result of 7.36 billion kroner and will maintain expectations of an underlying result of 26.85 billion kroner for the year,” Andersen said.

“The turbulence of the oil sector has had a negative effect on the oil and offshore markets and in the oil-dependent nations. This has altered the conditions for Maersk Oil, Maersk Drilling, APM Terminals and APM Shipping Services, where plans that focus on converting to the volatile market conditions will replace the earlier profit and growth goals. Our balance is still strong.”

READ MORE: Maersk sells offshore support company

Surprise, surprise
In light of the results, the Maersk board has decided to buy back shares worth 6.8 billion kroner, Andersen said.

The strong result has surprised most investment experts, who had pegged Maersk to downgrade its expectations for the year.