CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Maersk Divests LVGC Ops In Push For Profits

Maersk Divests LVGC Ops In Push For Profits

by Ulrika Lomas, Tax-News.com, Brussels

30 May 2013


Maersk has exited the very large gas carrier segment, selling its fleet of ten vessels to the BW Group after the firm's first quarter results showed a fall in market share in the oil and gas arena.

The Maersk Group's profits fell by some 33 percent during the first quarter to USD771m. Maersk's shipping division however posted a stronger performance, on account of an improvement in the cost-efficiency of its operations after the adoption of slow steaming and a decline in fuel prices, cutting Maersk Line's bunker oil costs by over a quarter on 2012 levels.

Maersk's decision to divest its VLGC vessels comes despite the uptake of vessels for other areas of the business, purchased on account of the historically low ship prices available amid the current capacity glut.

The group forecasts that 2013 profits will be subdued, at USD2.9bn for the full year, down on 2012 levels. Maersk Line announced on May 20, 2013, that it would follow Hapag-Lloyd's lead in hiking its price for each 20-foot container on several Asia-Europe routes to USD750 (USD250 less than Hapag-Lloyd), before hiking its rates further from August 1, 2013, until the end of September, by a further USD500. Many smaller operators have yet to follow suit, continuing to operate the route in the red in the hopes of retaining market share when demand picks up, and ship overcapacity pressures diminish.

Hanne B. Sørensen, CEO Maersk Tankers explained that the sale of the VLGCs "supports [Maersk's] strategy to focus on fewer segments."

TAGS: marine

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »