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.


Careem looks to raise up to $200 million in China

Updated 20 November 2018
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Careem looks to raise up to $200 million in China

  • Investment bank China International Capital Corporation (CICC) is advising Dubai-based Careem, but it was not immediately clear when or if a deal would be finalized
  • Careem said in October it had secured $200 million in a new funding round from existing investors

HONG KONG: Careem, Uber’s main Middle East rival, is looking at raising between $100 million and $200 million from Chinese investors, a source with direct knowledge of the matter told Reuters.
Investment bank China International Capital Corporation (CICC) is advising Dubai-based Careem, but it was not immediately clear when or if a deal would be finalized, the source said, adding there was a lack of familiarity and interest among Chinese investors in Middle Eastern start-ups.
Beijing-based CICC and Careem both declined to comment.
Reuters reported on Monday that CICC and New York-based investment bank Jefferies were both advising Careem on potential investment options and capital raising, including a possible Middle East M&A deal with Uber.
Careem, which counts German car maker Daimler and China’s largest ride-hailing company DiDi Chuxing among its other backers, competes head-to-head with Uber in most of the major cities in the Middle East.
Careem said in October it had secured $200 million in a new funding round from existing investors, and that it expected to raise more to finance expansion plans.
That investment, combined with previous fund raising and company growth into new markets and segments, gave Careem an estimated valuation of more than $2 billion.
Reuters reported in March that Careem was in early talks to raise as much as $500 million.