Maersk profit jumps 28% in Q3, raises outlook

Maersk Group, the world's largest shipping company, saw its net income increase 28% in 3Q13 to US$1.2bn compared to a year earlier and raised its financial outlook thanks to efficiencies in its shipping division, and growth in its port terminals and drilling units.

Revenue fell 1% to US$14.6bn given lower average container freight rates.

In its shipping division Maersk Line, net income rose 10.1% to US$554mn thanks to cost savings mainly from vessel network efficiencies and improved vessel utilization. However, revenue fell 2.6% to US$6.78bn.

Maersk said freight global market grew 5% in 3Q13 compared to 3Q12, with early indications of demand picking up, although it remains low given weak macroeconomic developments.

The Danish company also said that freight rates deteriorated significantly during the quarter and the fourth quarter has started with low freight rates, which will result in a significantly lower fourth quarter compared to the previous three months.

APM Terminals' net income rose 30.1% to US$203mn in 3Q13, while revenue went up 7% to US$1.12bn.

The jointly owned Brasil Terminal Portuario in Santos, Brazil, commenced operations during 3Q13. Operations remain limited while dredging work is under completion by the port authorities, with volumes ramping up over the coming months.

Following the results, the company raised its 2013 profit outlook to US$3.7bn from previously estimated US$3.5bn, excluding impairment losses and divestment gains.

In the January-September period, Maersk Group profit fell 7.5% to US$2.84bn and revenue declined 3.4% to US$42.8bn.