REUTERS/Edgar Su/File Photo
COPENHAGEN, Aug 12 (Reuters) – A.P. Moller-Maersk kept its downbeat 2016 profit forecast on Friday as the Danish shipping and oil giant reported net profit way under expectations as it struggles to cope with a shipping recession and tough oil markets.
The Danish shipping and oil group said net profit fell to $101 million in April-June, lagging a forecast of $196 million.
In June, Maersk fired their chief executive and announced plans to restructure the business, indicating it could split it into separate companies and sell off part of the group, including its oil division. The group named Soren Skou, head of Maersk Line, as its new group chief executive.
Maersk is fighting to remain the world’s leading container shipping carrier as a wave of mergers and acquisitions, particularly in Asia, creates new challengers trying to grab a bigger share of a depressed market.
The group kept its outlook for an underlying profit for the full year significantly below last years $3.1 billion.
A record number of around 150 container vessels are expected to be scrapped in 2016 but it will not be enough for an industry battling over capacity, low demand and falling rates, consultancy firm Drewry said in July. Imbalance between demand and supply is expected to persist in coming years.
German container shipping group Hapag-Lloyd said on Wednesday it dropped to a first-half operating loss of 39.7 million euros ($44.2 million) as disappointing freight rates hurt its business. (Reporting by Ole Mikkelsen; Ediitng by Alistair Scrutton)
(c) Copyright Thomson Reuters 2016.
Sign up for gCaptain’s newsletter and never miss an update
Essential maritime and offshore news, insights, and updates delivered daily straight to your inbox
President Donald Trump’s tariff onslaught has roiled Washington and Wall Street for nearly a month. If the trade war persists, the next upheaval will hit much closer to home.
Apple AAPL.O plans to shift the assembly of all iPhones sold in the U.S. to India as early as next year, pivoting away from China to avoid steep tariffs, the Financial Times reported, citing people familiar with the matter.
Denmark will spend about 4 billion crowns ($614 million) on building and procuring 26 navy vessels for patrolling, oil spill response and surveillance of undersea cables, Defence Minister Troels Lund Poulsen said on Tuesday.
Subscribe to gCaptain Daily and stay informed with the latest global maritime and offshore news
Stay informed with the latest maritime and offshore news, delivered daily straight to your inbox
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
