Maersk to Sell 2 Major Business Units?

Twitter
Facebook
LinkedIn
Email
maersk_to_sell_2_major_business_units_1280_800_84_s_c1

Following news of a sudden dip in profits, Maersk Group is set to announce the results of its strategic and structural review; and while the group are not expected to divest, it is less clear as to whether its terminal operating unit, APM Terminals (APMT) and logistics unit Damco will be sold off, according to JOC.com.

Analyst Alphaliner said: “The symbiotic relationship between Maersk Line and AMT suggests that a divestment of the terminal operations should likely be avoided at this stage, especially since the weak state of market weighs heavy on the valuations of APMT and other terminal operators.”

In a recent press release, Soren Skou, CEO of Maersk, said: To ensure the future strength, profitability and development of new growth opportunities of the company, the Board of Directors have initiated a strategic review of the company and will report on progress of the review before the end of Q3, 2016.”

Maersk’s loss of almost US$1 billion in Q2, 2016, in comparison to the same period a year prior has been contingent on the tough conditions currently plaguing many global carriers.

Technical Paper: Port Investment: The Rise of the Big Financial Players

Both Maersk and its shipping arm Maersk Line’s expectations for an underlying result that is significantly lower than 2015 is unchanged.

However, container transportation is still anticipated to increase between 1-3% and Maersk stands by its strong liquidity reserve of $11.5 billion.

In a recent report by PTI, Simon Heaney Consultant and Research Manager at Drewry Supply Chain Advisors explained that revenue is probably going to be lower than it was in the financial crisis of 2009 for global carriers.

Also, while shipping lines are cost-effective and more fuel efficient, the real challenge is cutting costs fast enough to offset the losses in revenue.

It is only since Q4, 2015 that carriers have not been able to do this, and now very much is dependent on a rebalance in supply and demand to push up rates, and thereby, profits.

Daily Email Newsletter

Sign up to our daily email newsletter to receive the latest news from Port Technology International.
FREE

Supplier Directory

Be listed with industry leaders operating within Ports and Terminals

Webinar Series

Join 500+ attendees on average with a Port Technology International webinar

Latest Stories

Cookie Policy. This website uses cookies to ensure you get the best experience on our website.