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Rough sailing for Maersk in second quarter

Christian Wenande
August 12th, 2016


This article is more than 8 years old.

Oil and shipping giant struggling on all fronts

Maersk hoping for smoother sailing in the future (photo: Maersk)

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.”

READ MORE: Maersk lays off 122 following loss of rig contract

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.


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Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

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Many declare that they simply cannot take another day off, as they are afraid of being fired.

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