Profits at Maersk Oil plummeted 58% last year as the Danish-owned group was hit by lower production and oil prices.
Profits slumped to £600million in 2013 from £1.4billion in its prior year, although the firm added that its 2012 bottom line was flattered by a one-off payment from an Alergian tax dispute as well as well as divestment gains.
The figures for the group’s parent’ company AP Moller-Maersk, which includes shipping, drilling, a global ports business and a supermarket chain, were down overall.
But the firm’s chief executive Nils Andersen insisted that the company has “reasons to be pleased”.
Shipping business Maersk Line almost trebled profits to £900million. Meanwhile, demand for oil rigs meant profits at £316.8million were “historically high”, driven in part by higher day rates.
The APM Terminals business also increased profit after a port acquisition in Russia and the opening of a jointly-owned port in Brazil.
“We have reason to be pleased with profit development in 2013,” Andersen said.
“The group reached £2.4billion in underlying earnings, an increase of £600million on the previous year. Maersk Line strengthened profitability despite challenging shipping markets and both APM Terminals and Maersk Drilling had their best result to date.
“As expected, Maersk Oil’s underlying profit was below last year due to decline in production and lower oil prices.
“However, production stabilised mid-year and increased towards the end of the year.
“Most of the group’s other businesses came out of 2013 as top quartile performers in their industry.”
The Copenhagen-based group’s turnover fell 4% in the year to £28.4billion while pre-tax profits also fell 4% to £4billion.
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