Maersk positive on global container shipping

Maersk announced a restructuring plan in 2016 focused on shipping which led to a $7.45 billion sale of energy arm Maersk Oil to Total last August. (Reuters)
Updated 09 February 2018
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Maersk positive on global container shipping

COPENHAGEN: A.P. Moller-Maersk missed fourth-quarter profit expectations on Friday but earnings were up and the chief executive leading a turnaround at the world’s largest container shipping company said the outlook was positive.
The Danish company’s earnings before interest, tax, depreciation and amortization (EBITDA) rose to $844 million from $605 million, but fell short of the $896 million forecast by analysts in a Reuters poll.
Maersk expects underlying net profit to rise this year and 3-4 percent growth in seaborne container transportation after a 5 percent advance last year, it said.
“I’m still very optimistic on the fundamentals of the global container shipping industry,” Chief Executive Soren Skou said in an interview.
Skou, who has staked his future on Maersk as a transport business, said the level of global trade looks positive despite more talk of protectionism and that orders for new vessels are at a historic low compared to current fleet size.
Maersk announced a restructuring plan in 2016 focused on shipping which led to a $7.45 billion sale of energy arm Maersk Oil to Total last August.
With oil prices rising again, it now has to prove to investors that its decision was right. The shares are down 27 percent from a July 2017 peak when optimism around freight rates started to fade.


Saudi minister Al-Falih says Aramco IPO likely in 2019

Updated 25 May 2018
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Saudi minister Al-Falih says Aramco IPO likely in 2019

  • Energy Minister Khalid Al-Falih: “We are ready, the company (Saudi Aramco) essentially has ticked all the boxes. We’re simply waiting for a market readiness for the IPO.”
  • Khalid Al-Falih: “Most likely it will be in 2019 but we will not know until the announcement has been made. All I could say is stay tuned.”

RIYADH: Saudi Arabia is most likely to hold the initial public offering (IPO) of oil giant Aramco in 2019, Energy Minister Khalid Al-Falih said on Friday, confirming a delay from the initial plan to list the company this year.

“The timing I think will depend on the readiness of the market, rather than the readiness of the company or the readiness of Saudi Arabia,” Khalid Al-Falih, who’s also the company’s chairman, said at the St. Petersburg International Economic Forum in Russia on Friday.

“We are ready, the company essentially has ticked all the boxes,” he said. “We’re simply waiting for a market readiness for the IPO.”

For almost two years, Saudi officials said the IPO was “on track, on time” for the second half of 2018. But for the first time in March they suggested it could be delayed until 2019.

“Most likely it will be in 2019 but we will not know until the announcement has been made,” Al-Falih said. “All I could say is stay tuned.”

The Aramco IPO would be a once-in-a-generation event for financial markets. Saudi officials said they hope to raise a record $100 billion by selling a 5 percent stake, valuing the company at more than $2 trillion and dwarfing the $25 billion raised by Chinese retailer Alibaba Group Holding Ltd. in 2014.