Maersk Line reports a satisfactory first half-year 2015 result

Maersk Line reported a first half-year 2015 (H1) result that is USD 220 million higher than H1 2014. The company credited the achievement to lower costs.

Revenue in H1 was USD 12,517 million, which is 6.8% lower than H1 2014 (USD 13,365 million). Volumes were 1.1% higher. The market share that Maersk Line lost in Q1 was regained in Q2, where volumes increased by 3.7% ahead of estimated global market growth of 1-2%.

In H1, the Return On Invested Capital (ROIC) was 12.2% and in Q2 the ROIC was 10.1%. In six (6) consecutive quarters, the company has delivered a ROIC above 8.5%, which is Maersk Line's medium-term target for return on invested capital.

The average freight rate continued to fall throughout the first half of 2015 due to weak demand, overcapacity and an intense competition on price. Maersk Line's average rate decreased by 8.1% compared to H1 2014, and in Q2 alone, the rate decreased by 14.1% to USD 2,261. In the Asia - Europe trade rates reached an all-time low as the trade contracted with 3%. The China Containerized Freight Index (CCFI) fell to its lowest level since 2009.

"We have built a business which remains profitable despite fierce competition, falling rates and wavering demand. Driven by our low cost position, we continue to lead the industry on profit and margins. I am convinced we can do more and in the coming years grow our business at least in line with the market. We have the people and we have the assets. Most importantly, we continue to improve and deliver the services our customers want," said Soren Skou, CEO of Maersk Line.

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