The Danish oil and shipping giant Maersk is under pressure on all fronts, according to its freshly-published financial results for the second quarter.
Encumbered by low growth and falling prices in nearly all its markets, Maersk produced an underlying profit of about 894 million kroner – a result that Maersk CEO Søren Skou described as “unsatisfactory”.
“Cost reductions and operational optimisations, however, made a significant contribution to mitigating the impact of the negative market conditions. Maersk Oil has reduced operational costs by 25 percent, upholding a break-even at 266-300 kroner per barrel,” said Skou.
“The costs in Maersk Line have been reduced to an all-time low level and are under 13,340 kroner/FFE for the first time. To ensure the future strength, profitability and development of new growth opportunities of the company, the board of directors has initiated a strategic review of the company and will report on progress of the review before the end of Q3, 2016.”
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Expectations unchanged
The continuing low oil prices and average container freight rates were among the parameters which had a negative impact on the company’s financial result.
Despite the disappointing midterm results, Maersk’s expectation for 2016 remains unchanged.
