Clever timing

8 February 2017 By Olaf Storbeck

The ailing Danish shipping and oil conglomerate reported disappointing fourth-quarter results, halved its dividend and replaced its chairman. Yet a rising oil price, recovering freight rates and Maersk’s coming split mean former SAP boss Jim Snabe is boarding at a turning point.

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Danish shipping group A.P. Moller-Maersk on Feb. 8 reported $1.5 billion in EBITDA for the fourth quarter of 2016, well below the $2.1 billion expected by analysts polled by Reuters.

Impairments totaling $2.6 billion caused the company to report an operating loss after tax of $2.7 billion for the quarter, compared to a profit of $337 million expected by analysts. The board proposed halving the dividend for the full year to 150 Danish crowns per share.

For 2017, Maersk expects higher underlying net profit and 2 percent to 4 percent growth in global demand for seaborne container transportation.

The group announced that Michael Pram Rasmussen, chairman of the board for 14 years, would step down at the end of March to be replaced by former SAP co-chief executive Jim Hagemann Snabe.

By 0920 GMT on Feb. 8, shares in the $34 billion group were down 3.6 percent to 11,220 Danish crowns.

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