The mother company of the APM Terminals, Maersk Group, has recorded a downslide of profits for 2015, going down by 82 per cent.
The Danish shipping and energy conglomerate delivered a profit of $925 million for the full year ending December 31, 2015, against the $5.2 billion reported in 2014.
Maersk’s underlying profit for the full year reached $3.1 billion, also down from the 2014 results when Maersk reported $4.5 billion in underlying profit.
Although the fall in oil price was blamed largely for the poor outing, compared to last year, profits were lower in Maersk Line, Maersk Oil, and APM Terminals and higher in Maersk Drilling and APM Shipping Services.
“After a satisfactory result in the first half of the year with a ROIC of 10.2 per cent, Maersk Group was severely impacted by a widening supply-demand gap across most of its businesses, leading to significant oil price and freight rate reductions. The ROIC for the second half of the year was a negative 6.3 per cent, impacted by impairments of $2.5 billion after tax in Maersk Oil, and for Q4 there was an underlying loss of $9 million (profit of $1.0 billion),” a statement from the company reads in part.
The group said that it delivered a strong cash flow from operating activities of $8 billion ($8.8 billion) for the year and $2 billion ($2.4 billion) in Q4, despite a significant decline in container freight rates and oil prices.
“We are satisfied with the good operational performance across our businesses in 2015. Despite the very challenging market conditions in our industries, all business units delivered positive underlying profits,” Maersk Group’s chief executive officer, Nils S. Andersen, said.