During 2009, the economic crisis has had a severe negative impact on the activities of Denmark’s AP Moller-Maersk  Group.

Freight rates and volumes for the group’s container shipping activities were 30 percent and five percent, respectively,  below the same period of 2008, and average rates for the tanker activities were considerably lower than in the  first nine months of 2008. The average price of crude oil for the period was 48 percent lower than in the same period of 2008, while the group’s share of oil and gas production was nine percent higher.  

“As expected, the AP Moller-Maersk Group was still negatively affected by the challenging market conditions in the third quarter of 2009, particularly in the markets for the Group’s container vessels and tankers,” Nils Smedegaard Andersen, group CEO, said.

“The  strong focus on reducing the level of costs continues to yield positive results, and with sales of treasury shares and issuance of bonds we have taken steps to strengthen the AP Moller-Maersk Group’s financial basis  and long-term funding position.”

Revenue for the period fell to US$ 35.304 million, 25 percent lower than in the same period of 2008, and the result for the period was a loss of US$706 million compared to a profit of US$ 3.6 billion.

The third-quarter result was a loss of US$166 million, including impairment losses of US$96 million.     

In the first nine months of 2009, impairment losses on intangible assets and property, plant and equipment totalled US$319 million, primarily on tankers, offshore and other shipping activities, compared to US$140 million in the same period of 2008.

Outlook for the full year 2009

For container trades, average rates including bunker surcharges for the fourth quarter are expected to be slightly above the third-quarter level, while volumes are expected to be somewhat below due to seasonal fluctuations.

The group's share of oil and gas production for 2009 is expected to be at the same level as 2008. In the fourth quarter, production is expected to be considerably below the third quarter due to lower share of production in Qatar.

In the fourth quarter, the Group's cash flow from operating activities is expected, as in previous years, to be negatively affected by tax payments on the oil and gas activities. As a result of the declining investment level, the group's cash flow used for capital expenditure is expected to be lower than in 2008.

The outlook for 2009 is still subject to uncertainty, a statement released by the company concluded.