COPENHAGEN, Feb 21 — Shares in the world’s leading container shipping group, AP Moeller-Maersk, plummeted today after the Danish firm made a weaker than expected profit forecast citing uncertainty over the US-China trade war.
The company’s stocks fell more than 10 per cent to 8.4 kroner (RM4.90) on the Copenhagen Stock Exchange in midday trading following the announcement.
The firm however said it had been back in the black last year, with a net profit of US$3.2 billion after a loss of US$1.2 billion in 2017.
Revenue meanwhile reached US$39 billion, up 26 per cent compared to 2017, it said in a statement.
Profits were boosted by US$2.6 billion from the sale of Maersk Oil to French giant Total for US$7.45 billion, after the deal was completed in March 2018.
“In 2018, we accelerated our transformation and improved earnings despite lower than expected container volume growth and an increase in bunker fuel prices,” said chief executive Soren Skou in a statement.
However, he added, “we still need to improve profitability from the level seen in 2018”.
For 2019, the company forecast underlying profit — as measured by earnings before interest, taxes, depreciation and amortisation (EBITDA) — to rise to US$5 billion from last year’s US$3.8 billion.
The increase was smaller than analysts’ expectations, and the firm pointed the finger at fears the US-China trade war could escalate.
Maersk said the effect of trade restrictions between the US and China introduced in 2018 is “estimated to reduce global container trade growth by 0.3-1.0 percentage points per year in 2019-2020 if US tariffs are increased to 25 per cent in March 2019”.
Talks are underway this week between top American and Chinese official to find a way to pause the trade dispute before a March 1 deadline, when the US is to increase tariffs on US$200 billion in Chinese goods to 25 per cent from the current 10 per cent.
“Maersk’s guidance for 2019 is subject to considerable uncertainties due to the current risk of further restrictions on global trade and other factors impacting container freight rates, bunker prices and foreign rate of exchange,” the company said.
Maersk, which has been seeking to disengage from the energy sector and shift focus towards transport and logistics, is moving to demerge its offshore drilling subsidiary Maersk Drilling, but has struggled to find buyers.
It said it would list Maersk Drilling on the Copenhagen exchange on April 4. — AFP
