Danish logistics firm AP Moller-Maersk reports loss in fourth quarter

DPA
·2 min read
Containers from the Maersk shipping company are on board a freighter on the Elbe. The Elbe is Germany's busiest river for ocean-going vessels. Danish logistics firm AP Moller-Maersk A/S reported on 08 February that it had swung to a loss in its fourth quarter due to weak revenues. Focke Strangmann/dpa
Containers from the Maersk shipping company are on board a freighter on the Elbe. The Elbe is Germany's busiest river for ocean-going vessels. Danish logistics firm AP Moller-Maersk A/S reported on 08 February that it had swung to a loss in its fourth quarter due to weak revenues. Focke Strangmann/dpa

Danish logistics firm AP Moller-Maersk A/S reported on Thursday that it had swung to a loss in its fourth quarter due to weak revenues.

Separately, the company said it has decided to terminate the fifth phase of the share buy-back program of 11 billion Danish kroner or around $1.6 billion, with immediate effect.

The lead manager, Skandinaviska Enskilda Banken AB's mandate to purchase shares on behalf of the company has been withdrawn.

Further, in line with its global integrator strategy, AP Moller-Maersk said its board of directors has decided to initiate the separation of its towage and marine services activities through a demerger.

As part of the demerger, the shares in Svitzer A/S and its subsidiaries as well as certain other related assets and liabilities will be contributed to a new legal entity under the name of Svitzer Group A/S.

Its shares will be admitted for trading and official listing on Nasdaq Copenhagen A/S.

Svitzer will continue to be headquartered in Copenhagen and operate under the Svitzer name.

For the fourth quarter, the company's loss was $436 million, compared to prior year's profit of $4.95 billion.

Loss per share was $27, compared to profit of $277 a year ago.

The company reported a decrease in Ocean of $5.8 billion because of significantly lower freight rates.

Underlying loss was $442 million, compared to profit of $4.86 billion a year ago.

Profit before depreciation, amortization and impairment losses, or EBITDA, plunged to $839 million from last year's $6.54 billion.

EBITDA margin fell to 7.1% from 36.7% a year ago.A.P. Moller - Maersk's revenue fell 34.1% to $11.74 billion from last year's $17.82 billion.

The revenue was hit by $6.1 billion lower revenue in ocean and lower revenue in logistics & services with revenue on par in terminals.

In Denmark, AP Moeller-Maersk shares were trading at 11,240 kroner, down 12.63%.