Maersk says crisis won’t stunt growth, investment

Monday, 7 November 2011 00:00 - - {{hitsCtrl.values.hits}}

Reuters: The economic crisis in many markets will not halt Danish shipping and oil group A.P. Moller-Maersk’s growth nor put its ability to invest at risk, its chief executive said in a company magazine published on Monday.

“The questions (about the impact of the crisis) are natural, but the answer is no,” Chief Executive Nils Smedegaard Andersen said in Maersk Post magazine. “We have a better cost position and a stronger balance sheet than during the previous crisis, in 2008.”

“This is the new normal, and we are prepared for it,” Andersen said of the economic situation. A.P. Moller-Maersk, whose Maersk Line is the world’s biggest container shipping company, is scheduled to report third-quarter results on 9 November.

Global shipping markets have been hit by increased economic uncertainty, which has put freight rates under pressure, as Danish tanker and dry-bulk operator Torm said on Monday when it warned of deeper-than-expected 2011 losses. “Even if mature markets are stagnant, we still see healthy development in growth markets, where we have a strong position and continue to expand,” Andersen said.

He said several emerging markets were developing into major home markets for Maersk, increasing demand for its shipping and energy. “Growth will continue,” he added. Andersen said that was why the Maersk group has invested in several new port terminals and terminal projects this year in Latin America, Eastern Europe and Asia.

He said that was also the reason why Maersk had opened new container shipping services between Latin America, Africa and Europe.

“Further, we have acquired oil licences and developed oil fields around the globe,” Andersen said “We will continue investing in growth regions and businesses and keep our eyes open to opportunities which emerge when industries come under pressure.”