Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on AP MOELLER-MAERSK A S-B. We currently have 10 research reports from 1 professional analysts.
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AP MOELLER-MAERSK A S-B
AP MOELLER-MAERSK A S-B
Maersk Line's offensive
01 Dec 16
Maersk Line has reached an agreement with the Oetker Group related to the acquisition of the container shipping company Hamburg Süd. The acquisition price is undisclosed, nor are the financial data. Hamburg Süd is ranked n°7 in the container shipping market with a market share of 2.9%, while Maersk Line is the market leader with a market share of 15.7% (pre-acquisition). The company had revenue of $6.7bn in 2015 (o/w $6.3bn in container shipping) and employs 5,960 people in the world, o/w 1,440 people at sea. The company operates under three brands, Hamburg Süd, CCNI based in Chile, and Aliança based in Brazil. In 2015, Maersk Line’s revenue was $23.7bn. The operation is subject to the final agreement and regulatory approvals in China, Korea, Australia, Brazil, the US and the EU, amongst others. The operation is expected to be completed at the end of the year 2017.
Speculations in oil & gas
30 Nov 16
According to the new strategy, AP Moller-Maersk is now split into two divisions: Transport & logistics and Energy. In the Energy division, which includes Maersk Oil, Maersk Drilling, Maersk Supply Service and Maersk Tankers, the final goal is to separate these businesses from AP Moller-Maersk through a merger, a joint-venture and/or a listing. There are currently rumours of talks between AP Moller-Maersk and Dong Energy to merge Maersk Oil (2015 revenue of $5.6bn, production of 312,000 boepd) and the Dong Energy’s oil & gas activities (2015 revenue of $1.9bn, production of 115,000boepd). Established in 2006 by the merger of six Danish energy companies, Dong Energy (2015 total revenue of $10.5bn – c.$11bn under IFRS standards) is involved in the production of oil & gas, renewables and power distribution. Dong Energy was listed at DKK235/share (market capitalisation of DKK98.2bn) on Nasdaq Copenhagen on 9 June 2016. The Kingdom of Denmark remains the main shareholder with 50.4% of the shares, ahead of New Energy Investment with 17.4%.
Poor 2016 confirmed, lack of visibility for 2017.
02 Nov 16
AP Moller-Maersk delivered a poor set of results in a depressed environment in both transport and energy. Nevertheless, there were some positive achievements in Q3 16 such as a further gain in market share at Maersk Line and breakeven now below $40/bl (vs $40-45/bl) at Maersk Oil. Maersk Drilling had an exceptional and non-recurring performance due to strong termination fees. Q3 16 results: Based on revenue of $9,177m (-9%), impacted by a lower average container freight rate (-16% to $1,811/FFE) and the oil price (-8% to $46/bl), EBITDA was down to $1,887m (-16%), EBIT collapsed to $805m (-33%) including a lower gain on the sale of assets ($9m vs $118m in Q3 15). Group net profit was $429m (-43%). Restated for the gain on the sale of assets and impairment losses, the underlying net result dropped to $426m (-36%) due to lower contributions from Maersk Line which was loss-making ($-122m vs $243m in Q3 15), APM Terminals which was impacted by tough trading conditions in Latin America, North-West Europe and some oil-related countries in Africa (-28% to $126m), and APM Shipping Services ($25m vs $150m in Q3 15) which suffered losses at Maersk Tankers ($-1m vs $58m in Q3 15) and Maersk Supply Service ($-11m vs $44m in Q3 15). 9m figures: AP Moller-Maersk posted revenue of $26,577m (-15%), EBITDA of $5,263m (-29%), EBIT of $1,951m (-57%) after a lower gain on the sale of assets ($131m vs $461m in Q3 15) and share of profit of joint ventures and associated companies (a total of $167m vs $221m in Q3 15). Group net profit was $741m (vs $3,363m in Q3 15). Operating cash flow decreased to $2,861m (-52%) due to lower EBITDA and was close to capital expenditure of $2,936m net of the sale of assets. Other outflows included principally acquisitions ($694m), the payment of the ordinary dividend to shareholders ($953m) and the purchase of own shares ($-475m). Net debt increased to $11.3bn and gearing remained reasonable at 32% as of 30 September 2016.
From a diversified group to a transport & logistics company
29 Sep 16
On 22 September 2016, AP Moller-Maersk released an update on its new strategic issues. The group’s activities will be split into two divisions: Transport & logistics and Energy. The Transport & logistics division includes Maersk Line, APM Terminals, Svitzer, Damco and Maersk Container Industry and is targeting an increase of up to 2pts of the ROIC in three years thanks to synergies between the entities which operate standalone currently and not as an integrated company. The Energy division includes Maersk Oil, Maersk Drilling, Maersk Supply Service and Maersk Tankers. The final goal is the separation of these businesses from AP Moller-Maersk within 24 months. Management is exploring various solutions for each entities such as a merger, a joint-venture and/or a listing. Translated into financial goals, AP Moller-Maersk is targeting growth, an improvement in profitability and a disciplined capital allocation that will enable an investment grade rating.
Cost reductions everywhere
12 Aug 16
AP Moller-Maersk had poor results in Q2 16 as expected. In particular, Maersk Line turned negative at the underlying profit level. Q2 16 earnings. - Revenue reached $8,861m (-16%). In the container shipping activity, key indicators included an increase in volume (+6.9% to 2.65m FFE) above market growth (+2%) and a further reduction in average freight rate (-24% yoy to $1,716/FFE, -8% sequentially). In the oil & gas business, the average oil price was down to $46/bl (-26% yoy). - Group EBITDA decreased to $1,779m (-32%) due to lower contribution from Maersk Line (-63% to $365m), Maersk Oil (-11% to $755m), APM Terminals (-9% to $187m), Maersk Drilling (-9% to $330m), and APM Shipping Services (-27% to $157m). - Group profit collapsed to $118m (vs $1,086m in Q2 15) and the underlying profit dropped to $134m (vs $1,099m in Q2 15) due to an underlying loss of $-139m at Maersk Line (vs $+499m in Q2 15) and lower contributions from all other activities, o/w Maersk Oil which had an underlying result of $130m (vs $217m in Q2 15). H1 16 key figures. - Based on revenue of $17,400m (-17%), EBITDA dropped to $3,376m (-35%), EBIT was $1,146m (-66%) due to the lower gain on the sale of assets ($122m vs $343m in H1 15) and share of profit in joint ventures ($59m vs $100m in H1 15). - Group net profit collapsed to $312m (vs $2,608m in H1 15) after a higher net financial result ($-275m vs $-151m in H1 15) and significant income tax ($-529m vs $-553m in H1 15). The operating cash flow was $1,190m (-68%) below net capex of $2,061 (-42%). Cash out-flows included acquisitions net of disposals for $-696m, the purchasee of owned shares for $-475m, and the dividend paid for $-953m. The financial situation was not alarming on 30 June 2016. Net debt amounted to $11.6bn and represented 34% of shareholders’ equity.
New Group CEO for which Group profile?
24 Jun 16
During the day on 23 June 2016, AP Moller-Maersk announced the appointment of a new Group CEO, Søren Skou, to replace Nils Smedegaard Andersen who leaves the company. Søren Skou has been CEO of Maersk Line since 2012. He will take up the positions of CEO of AP Moller-Maersk with effect from 1 July 2016 and continue as CEO of Maersk Line. AP Moller-Maersk’s board of directors asked the new management to “investigate the strategic and structural options to increase agility and synergies” and will communicate on the progress before the end of Q3 16. An investor day is planned on 22 September 2016. The chairman of the board of directors, Michael Pram Rasmussen, said to the Danish news agency Ritzau Finans that the question is whether AP Moller-Maersk should be a large group or whether it should be a number of independent companies, adding that the solution has yet to be found.
Panmure Morning Note 30-11-2016
30 Nov 16
RPC, the international plastics products design and engineering group, has delivered yet another strong set of results (1H17 EBITDA +65%, EPS +45%). At the interim stage PBT was +66% (materially better than we had forecast). Topline growth has principally being driven by acquisitions (GCS + BPI), though organic remains a feature (and crucially remains at levels consistent with FY16). The two recent acquisitions have quickly been assimilated into the panEuropean platform and management has raised cost synergy guidance (again).
N+1 Singer - Morning Song 30-11-2016
30 Nov 16
Sanderson has delivered full year results in line with expectations and the 19 October trading update after a strong finish to the year compensated for a slower start. A healthy level of pre-contracted recurring revenue (50%), incremental sales to existing customers and new customer wins at higher average order values helped deliver solid revenue growth in both the Digital Retail (+9%) and Enterprise (+12%) divisions. A decent order book and good sales momentum suggest that the company is on track to deliver on unchanged profit expectations for the current year. We continue to view the valuation (FY17 EV/EBITDA 8.6x) as undemanding given an attractive combination of accelerating growth potential, strong cash generation and growing dividends.
Panmure Morning Note 02-12-16
02 Dec 16
Today James Halstead will be holding its 101st AGM. Trading during the first part of FY17 has been mixed, with some notable challenges. However, movements in FX (i.e. weak sterling) is boosting reported earnings, offsetting UK volume trends and pricing pressures. Whilst earnings are likely to be second half weighted, the picture is in-line with expectations and we are leaving our FY17 PBT estimates unchanged (£47.4m in FY17 vs £45.4m FY16).
02 Dec 16
On 30 September 2016, when the company announced its full year results, it reported that the UK business had seen a slow start to the year, with particular weakness in repair and renewal spending by the NHS as well as “reticence” in the education sector. However, with the UK only representing about a third of the business, this weakness was expected to be more than offset by the positive effect of a weakened sterling on its overseas business, given the benefits for competitiveness and margins.
N+1 Singer - Morning Song 29-11-2016
29 Nov 16
Vp has reported another impressive set of interims, confirming strong growth in most markets and a positive outlook. Recent acquisitions are bedding in well and the full year outturn is set to exceed previous expectations (5%/6% EPS upgrades in FY17/FY18). The recent Capital Markets Day provided a reminder of Vp’s qualities (specialist focus, high returns, strong cash generation) and its growth potential, which in our view are not reflected in a modest <11x P/E rating. We firmly believe the shares are due a re-rating and see intrinsic value in excess of 800p.