A.P. Moller-Maersk A/S, the owner of the world’s biggest container shipping line, reported its earnings for the fourth quarter of 2016, with earnings and revenues declining.
According to the report, the company announced loss of $2.7billion for the fourth quarter, compared with the loss of $2.5 billion in the same period last year. The company explained that the loss was partly due to the negative impact of $1.5 million impairments in Maersk Drilling and $1.1 billion in Maersk Supply Service. For the full-year 2016, the loss from continuing operations was $1.9 billion, compared with $925 million profits in 2015. For 2017, the company expected that the profits will improve $1 billion compared with the results of 2016.
Revenues for the full-year 2016 dropped to $35.5 billion from $40.3 billion of 2016. The decrease was mainly due to lower average container freight rates and lower oil prices. Operating expenses also declined $2.6 billion, which was due to lower bunker prices.
“2016 was a difficult year financially, with headwinds in all of our markets. However, it was also a year when we decided to substantially transform A.P. Moller - Maersk for the future. We have set a new course that over the next few years will lead A.P. Moller - Maersk to become a focused container shipping, logistics and ports company with the aim of growing revenue again,” Søren Skou, the CEO of Maersk Group, said in the statement.
“As communicated at our Capital Markets Day in December, our top priorities for 2017 remain integrating our Transport & Logistics businesses, taking out cost in APM Terminals and Damco, closing the Hamburg-Süd acquisition, as well as progressing the work on finding structural solutions for each of our oil and oil-related businesses,” he added.