A.P. Moller-Maersk A/S (AMKAF.PK,AMKBF.PK) reported a fiscal 2016 loss from continuing operations of $1.9 billion compared to profit of $925 million, prior year. The company said its fiscal year loss was negatively impacted by post-tax impairments of $2.8 billion primarily relating to Maersk Drilling of $1.4 billion and Maersk Supply Service of $1.2 billion. The underlying profit was $711 million compared to $3.1 billion, last year.
Full year revenue decreased to $35.5 billion from $40.3 billion, prior year, across all eight businesses, predominantly due to lower average container freight rates and lower oil price. Operating expenses decreased by $2.6 billion mainly due to lower bunker prices and focus on cost efficiency across all businesses.
The company reported a fourth-quarter loss of $2.7 billion compared to a loss of $2.5 billion, previous year. The company noted that its fourth-quarter loss was negatively impacted by impairments of $1.5 billion in Maersk Drilling and $1.1 billion in Maersk Supply Service. The result for prior year was impacted by post-tax impairments of $2.5 billion on oil assets. The underlying loss was $63 million compared to a loss of $9 million, prior year. The underlying loss was mainly due to lower underlying profit in Maersk Drilling due to more idle rigs, and higher net financial items due to higher debt and negative currency effects, partly offset by higher underlying profit in Maersk Oil.
Maersk reported fourth-quarter consolidated revenue of $8.89 billion compared to $9.12 billion, previous year.
The Group CEO, Søren Skou, said: "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. Møller - Mærsk A/S for the future. We have set a new course that over the next few years will lead A.P. Møller - Mærsk A/S to become a focused container shipping, logistics and ports company with the aim of growing revenue again."
For 2017, A.P. Moller - Maersk expects to deliver an underlying profit above 2016, mainly driven by an improvement in underlying profit in excess of $1 billion in Maersk Line compared to 2016.
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