We were told by Rickmers CEO that Maersk needed the new ships badly, so I decided to do some research on this saviour.
From the article below, there are 2 mixed signals. One is that the group actually views the shipping line as a less profitable business and will not receive much investment in future. I think for a CEO to say this in public is a very strong statement. Will it lead to divestment? If so how will it impact Rickmers?
The good news is of course, if they do not want to buy new ships, the alternative is to rent. It will mean a good growth prospect potential for Rickmers.
For now, there is no clear answer.
No more ships for Maersk
The Maersk Group began on the back of its shipping fleet but now wants to invest in more profitable areas
Executive management in the A.P. Møller-Mærsk Group have indicated that the foundation stone of the company – its container shipping line – is not as profitable as other areas and will not receive as much investment in the future.
Maersk chief executive Nils Smedegaard Andersen told Berlingske Tidende newspaper that the heavy investment in Maersk Line over the last two decades meant that the company’s fleet simply can’t get any larger.
That, coupled with falling profits, means the Copenhagen-based group will focus its future investments in its oil and terminal activities.
‘We must spread our investments in the areas where we will get the best returns. Maersk Line has given bad yields in the last few years, and it is a complex area to make money in. Where investments are concerned, our main focus in the future will be directed towards oil and terminals, among others,’ said Andersen.
In recent years, the Maersk Group has invested up to 60 billion kroner in new ships and projects, but now wants better returns from areas of ‘great potential’.
‘Our oil business and terminals, together with other business interests, continue to grow significantly faster than the market,’ said Andersen.
The CEO confirmed that even when global economies stabilise again, the group does not intended to order new ships for Maersk Line, but rent vessels for varying periods to increase flexibility.
The Copenhagen Post
Edited June 22, 2009
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