EMEA News
Lower Bunker Costs Could Help Maersk to Surpass Profit Expectations
Norweigan investment bank DNB Markets has today said that AP Moeller-Maersk (Maersk) may surpass its 2014 earnings prediction due to lower than expected bunker costs, Tradewinds reports.
DNB suggested in its report that Maersk could upgrade its earnings guidance from $4.5 billion.
While a lower oil price is expected to weigh on results for Maersk Oil, the benefit to Maersk Line of lower bunker prices is said to more than make up for it.
"A $20 per barrel decline in oil price ($120/tonne bunker price) equals $0.3bn lower bunker costs as Maersk Line removed its bunker adjustment clauses as a result of the slow-steaming policy," Tradewinds quoted DNB Markets as writing.
DNB Markets echoed comments from other shipping industry players that the box market remains tough, suggesting that supply of new ship capacity has surpassed demand every year since 2011.
DNB Markets expects this trend to change in 2016, but lower bunker costs will aid Maersk Line in the meantime.
Shipping executives recently agreed at a seminar in Singapore that the container shipping industry faces two tough years ahead before recovery.
