Maersk 2008 H1 net profit rises 22.8%

Danish shipping and oil group AP Moller-Maersk is expected to post a 22.8 percent rise in half-year 2008 net profit, driven by its oil and gas division, according to a Reuters poll on Friday.

The average forecast in the poll of 15 analysts was for a net profit of krone10.2 billion (Dh7.4bn) compared with krone 8.3bn in the corresponding period last year.

The company is expected to post a rise of 15.5 per cent in half-year sales, to krone151.5bn.

Maersk operates the world's largest container shipper, Maersk Line, and controls about 85 per cent of Danish oil production in the North Sea together with partners Shell and Chevron.

"The focus in the report will be on its main business areas, Maersk Line and Maersk Oil and Gas. While oil and gas has benefited from high oil prices, Maersk Line has suffered due to declining demand," Jyske Bank said in a research note.

Maersk oil and gas EBIT is seen more than doubling to krone25.4bn, while operating earnings for the container and shipping arm are seen dropping 62 per cent to krone445m.

Handelsbanken Capital Markets said in a research note that container shipping rates on Asia-Europe routes were now falling year-on-year and volumes were weakening.

"The outlook for the second half of 2008 seems weaker than three months ago. On the other hand, the oil price is somewhat higher. In total, APM will need trim its 2008 net profit outlook," the bank said.

The conglomerate also has a retail arm, a tanker business, and an offshore oil services company, as well as a 20 per cent stake in Danske Bank. Maersk's big shipping competitors are Taiwan's Evergreen Marine Corp., Japan's Mitsui OSK Lines, Korea's Hanjin Shipping, Germany's Hapag Lloyd and privately-owned MSC.

Maersk is due to release results on Wednesday.