
Maersk profit tops a billion
Danish shipping giant AP Moller-Maersk has lifted its first-quarter net profit to $1.02bn as Maersk Line improved its operations.
The profit compares to $790m achieved in the same period of 2013.
Revenue was up to $11.73bn from $11.63bn.
The group called the result "satisfactory" and said all its units except Maersk Drilling contributed to the improved profit.
Maersk Line was boosted by "high utilisation and continued cost reductions," according to group CEO Nils Andersen.
Average container freight rates were 5.1% lower, but profit increased to $454m from $204m in 2013.
Volumes grew 7.3% to 2.2m feu and operating costs were cut by 9%.
Bunker prices fell and the division booked an impairment reversal of $72m.
The services and other shipping unit saw earnings reach $75m from $67m a year ago.
This improvement was mainly down to Maersk Tankers, which turned a loss of $15m into a profit of $28m.
But the offshore shipowning division, Maersk Supply Service, saw profit cut to $24m from $45m.
Salvage group Svitzer produced earnings of $33m, up from $30m.
And APM Terminals grew its container volumes and produced profit of $215m from $166m the year before.
Looking ahead, the company said it expected 2014 profit to be "significantly "above" the 2013 result of $3.8bn.
It is banking a $2.8bn gain from the sale of its Danish supermarkets business in the period.
Maersk has upped the forecast for Maersk Line from being in line with last year's profit of $1.5bn to an expected increase on this figure.