AP Møller-Maersk Profits Up 23% in Q3

Maersk Line took delivery of three Triple E ships over the quarter

AP Møller-Maersk reports its profits for the third quarter of 2013 rose 23 percent to DKK 6.4 billion ($1.1 billion) year-over-year, even as revenues dropped six percent to DKK 82.1 billion ($14.6 billion).

"The improvement was driven by lower unit costs through the continuous focus on operational cost savings mainly from vessel network efficiencies and improved vessel utilisation, and also supported by lower bunker price," the company said.

Maersk Line, the company's container division, saw revenues drop 8 percent to DKK 38.2 billion ($6.8 billion), while profits rose 9 percent to DKK 3.1 billion ($554 million).

Maersk Line's transported volumes rose to 2.3 million forty-foot equivalent units (FFE) from 2.1 million FFE, but the average freight rate dropped to $2,654 per FFE from $3,022 per FFE.

The decline in rates was somewhat cushioned by a drop in bunker prices to $580 per tonne from $648 per tonne.

Maerk Line's total cost per FFE dropped 13 percent to $2,622, thanks mostly to vessel network efficiencies.

It also reduced its bunker costs 17.1 percent year-over-year to $1.3 billion, with 7.8 percent attributable to lower bunker consumption and 10.5 percent driven by lower prices.

Over the quarter, Maersk Line took delivery of three of its new Triple-E vessels, bringing its total fleet to 279 owned vessels with a total capacity of 1.6 million twenty-foot equivalent units (TEU) and 297 chartered vessels with 1.1 million TEU.

The fleet capacity rose 3.9 percent year-over-year.

Maersk Line is working to further improve its efficiency by working with other major carriers in the P3 Alliance, which is now moving through regulatory reviews.