(Video) Maersk Sets Massive New Profit Record

Maersk has announced a record net profit amount of US$5.2 billion in 2014, up 38% on 2013’s result.

This was driven by a strong performance by Maersk Line who reported a profit of $2.3 billion.

Maersk Line’s 2014 earnings were 50% higher than 2013, with the liner seeing a Q4 result that was more than double its earnings in the same quarter of 2013.

Significant cost savings were achieved through the falling bunker fuel prices that dropped 11% since Q3, 2014.

Nils Andersen, CEO of Maersk Group, said: “In our previous forecasts we did not see the size of the oil price drop, but $70-$90 a barrel is the normalised price we use in our calculations.”

Commenting on the beginning of its new East-West trade service with 2M partner MSC, Anderson said: “It is too early to declare victory, but our customers have received the new network well and we don't expect anything negative this year.”

Through the reductions of unit costs, Maersk Line is aiming to be more competitive, according to the Journal of Commerce.

Furthermore, Maersk has recently decided to sell its 20% stake in Danske Bank in a bid to further develop its shipping business.

It has also announced that Malta Freeport Terminal will act as its main transhipment hub, which intends to offer its clients 17 weekly mainline services.  

Watch a video interview with Maersk CEO Nils Anderson, where he explains what drove the group's record profits for 2014:

(Source: gCaptain (YouTube))