Q2 2017 Financial results

Interim result Q2 2017: Maersk Tankers delivers a loss in a challenging product tanker market.

Maersk Tankers reported an underlying loss of USD 17m (profit of USD 26m) in the second quarter of 2017. The result was negatively impacted by declining spot market rates, which were the main driver for Maersk Tankers’ average Time Charter Equivalent (TCE) earnings declining by 27%.Due to an expected continuation of the current low asset valuation, A.P. Møller – Mærsk A/S has made an impairment of USD 464m related to Maersk Tankers. 

“Maersk Tankers delivered an unsatisfactory underlying result in the second quarter. The result was negatively impacted by freight rates declining 21% across markets and a fleet that only took advantage of some temporary regional market spikes,” said Christian M. Ingerslev, CEO of Maersk Tankers.

In the weakened markets, Maersk Tankers managed to reduce the vessels’ daily running costs by 3% compared to Q2 2016, through lower repair and maintenance costs, crewing efficiencies and procurement optimisations.

“We continued to show solid operational performance driven by our technical capabilities. This contributed to further reductions in our daily running costs, which is important for our competitiveness,” said Ingerslev.

Maersk Tankers established a global Aframax pool in April, consisting of five vessels by the end of the quarter. The company operates 55 vessels for other owners, creating partnerships, growing the fleet of vessels and generating asset-light income.

Maersk Tankers continues the work to deliver on its business strategy, enabled by digitisation.

Our priority is to deliver consistently on our strategy to ensure optimised vessel positioning, cost leadership and asset-light income. As part of this, we will increasingly look to establish partnerships and take advantage of the opportunities digitisation offers, strengthening the resilience of our business and supporting consistent delivery of strong performance and results.

Christian M. Ingerslev, CEO Maersk Tankers

At the end of the quarter, Maersk Tankers operated 160 product tanker vessels across four segments: Intermediate, Handy, Medium Range (MR) and Long Range 2 (LR2). Of these, Maersk Tankers owned 81, 24 were chartered and 55 were on commercial management.

Financial key points for Q2 underlying result:

- In weaker spot markets with freight rates declining by 21% and challenging commercial performance, Maersk Tankers reported an underlying loss of USD 17m

- Reduction in daily running cost by 3% compared to Q2 2016

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