Maersk to shift away from shipping


Published — Tuesday 20 November 2012

Last update 20 November 2012 2:04 am

| نسخة PDF Print News | A A

COPENHAGEN: Danish conglomerate A.P. Moeller-Maersk will no longer invest heavily in Maersk Line, the world's biggest container ship operator, and will instead focus on its oil, drilling rigs and ports units, it said yesterday.
"We will move away from the shipping side of things and go towards the higher profit generators and more stable businesses," Chief Executive Nils Andersen told the Financial Times as he announced a major shift in strategy for Maersk.
Last year, Maersk Line posted a net loss of $ 540 million, while the oil division reported a profit of $ 2.1 billion, the drilling unit earned $ 495 million and ports made $ 649 million.
Maersk's container business has been affected by a slowdown in routes between Europe and Asia, where it has cut capacity this year amid a volatile outlook for the industry.
The group said earlier this month it expected global demand for seaborne containers to rise by 3.0 percent this year, which was lower than the 4.0 percent stated in the second quarter.
Maersk Line is the group's main subsidiary, which holds 16 percent of the global market share. It said it expects a "modest positive result" this year after freight rates rose in the second half of the year.

A.P. Moeller-Maersk more than tripled its net profit to 5.15 billion kroner (690 million euros, $ 880 million) in the third quarter, somewhat lower than what analysts had expected.

What's happening around Saudi Arabia

JEDDAH: At the weekly Cabinet meeting on Tuesday, Vice Custodian of the Two Holy Mosques Prince Mohammed bin Naif briefed the Cabinet on the talks held by Custodian of the Two Holy Mosques King Salman with President Abed Rabbo Mansour Hadi of Yemen,...
JEDDAH: Private schools have been devising new ways to raise money from parents to circumvent the Education Ministry’s cap on fee increases, a local publication reported here recently.Schools now charge for services that do not require the ministry’s...
JEDDAH: Vice Custodian of the Two Holy Mosques, Minister of Interior and Chairman of the Supreme Haj Committee Prince Mohammed bin Naif has approved the general plan for implementation of Civil Defense works in emergency cases during the current Haj...
RIYADH: The government has shut down a cosmetics factory in Riyadh for using undisclosed raw materials and unhygienic process at its production facility.A team from the Ministry of Commerce and Industry, during a routine inspection, found the plant u...
RIYADH: Recruitment offices here have decided to stop hiring Bangladeshi workers because they claim that a supply crunch has raised costs.Ibrahim Al-Megheimish, a recruitment expert, said that there are too few Bangladeshi workers seeking employment,...
RIYADH: As many as 200 students have enrolled into different courses at the Riyadh-based Saudi Aviation Flight Academy (SAFA) with 70 percent of them being Saudi nationals, said Saleem Bava, head of marketing and admission at SAFA.SAFA offers a mix o...

Stay Connected