COPENHAGEN (AFP) – Danish shipping giant Maersk posted a huge drop in net profit for the first quarter yesterday as Yemeni rebel attacks force it to avoid the vital Red Sea route.
Maersk reported a net profit of USD177 million in the first three months of the year, a 13-fold drop from the same period last year.
Turnover fell 13 per cent to USD12.4 billion, slightly lower than forecast by analysts surveyed by financial data firm FactSet.
The company raised, however, its outlook for the full year, citing higher demand and increased rates.
It now expects an underlying core profit ranging between USD4 billion and USD6 billion, up from USD1 billion-USD6 billion previously.
“We had a positive start to the year with a first quarter developing precisely as we expected,” Maersk Chief Executive Vincent Clerc said in a statement.
“Demand is trending towards the higher end of our market growth guidance and conditions in the Red Sea remain entrenched,” he said.
“This not only supported a recovery in the first quarter compared to the previous quarter, but also provides an improved outlook for the coming quarters, as we now expect these conditions to stay with us for most of the year.”
The Maersk share price was nonetheless down by almost five per cent on the Copenhagen stock exchange around two hours after the earnings report was released, on a largely flat market.
