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MÆRSK

Maersk to mull splitting group under new CEO

Danish oil and shipping conglomerate A.P. Moller-Maersk said on Thursday it is considering splitting the group into several separate companies, as it named a new chief executive.

Maersk to mull splitting group under new CEO
The company said the current chief executive of shipping unit Maersk Line, Søren Skou, 51,would replace Nils Andersen, 57, at the helm, combining two roles as he would continue to head the shipping business.
 
Andersen, who became chief executive in 2007, had strengthened “the customer focus and competitiveness of the businesses,” chairman Michael Pram Rasmussen said in a statement.
 
“The board of directors has tasked the new management to investigate the strategic and structural options to further increase agility and synergies,” the group said.
 
“We will evaluate… whether it makes sense to split up into several smaller units,” Rasmussen told Danish news agency Ritzau.
 
The company said it would “communicate on the progress” of this plan before the end of the third quarter.
 
Maersk Line is currently facing a depressed shipping market that is weighed down by overcapacity and sluggish global trade, while Maersk Oil has had to cut staff as a result of falls in oil prices.
 
Other Maersk businesses include port operator APM Terminals and offshore oil drilling company Maersk Drilling.
 
Shares in Maersk closed 11.9 percent higher on the Copenhagen stock exchange on Thursday, where the main index was up 1.86 percent.

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BUSINESS

Maersk profits up as global supply chain disrupted

Danish shipping giant, AP Møller-Maersk, said Tuesday that profits were up sixfold in the third quarter as the coronavirus pandemic and global supply chain problems caused container prices to soar. 

Maersk headquarters in Copenhagen. The Danish shipping company posted hefty profits in the third quarter of 2021.
Maersk headquarters in Copenhagen. The Danish shipping company posted hefty profits in the third quarter of 2021. Photo: Niels Christian Vilmann/Ritzau Scanpix

“Maersk delivered record earnings” in the third quarter, chief executive Soren Skou said.

“In the ongoing exceptional market situation, with high demand in the US and global disruptions to the supply chains, we continued to increase capacity and expand our offerings to keep cargo moving for our customers.” 

Maersk said that its bottom-line net profit amounted to $5.438 billion in the period from July to September, compared with $947 million a year earlier.

Underlying, or operating, profit increased nearly fivefold to $5.859 billion and revenues jumped by 67 percent to $16.612 billion.

“Results in Q3 were driven by high freight rates in an exceptional market situation,” the group said.

Looking ahead, Maersk said it is sticking to its full year forecast for operating profit of 18-19 billion dollars. 

However, the ocean shipping division “is now expected to grow below” projected global container demand of between seven and nine percent this year, “subject to high uncertainties related to the current congestion and network disruption,” Maersk said.

“The current trading conditions are still subject to a higher-than-normal uncertainty due to the temporary nature of current demand patterns, disruptions in the supply chains,” it cautioned.

READ ALSO: Danish shipping giant calls for global carbon tax for shipping

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