Maersk tops profit hopes on container shipping recovery

• 2012 net profit $ 4.04 b vs forecast $ 3.73 b
• Maersk Line sees stronger 2013 on container demand pickup
• Sees 2013 profit below 2012, market expected improvement
• Maersk Oil 2013 profit seen “significantly below” 2012

COPENHAGEN (Reuters): A.P. Moeller-Maersk beat annual profit forecasts and predicted its container shipping business would benefit from a pickup in world trade this year, helping to overshadow a warning on falling earnings at its oil business.

The Danish group, a bellwether for global trade as its vessels make up 14% of world container shipping capacity, said its net profit rose 20% to $4.04 billion last year, after it successfully raised freight prices.

That beat analysts’ average forecast and the company’s previous estimate, which were both around $3.7 billion.

However, it warned profits were likely to be lower this year, against analysts’ average forecast for an improvement to $4.2 billion, due to continued weakness in the global economy as well as lower output and exploration costs at its oil business.

Nykredit analyst Ricky Rasmussen was impressed with the results at Maersk Line, the container shipping business, and relaxed about the cautious forecast for this year.

“If we look at the outlook for 2013, I can see some in the market would see it as very conservative, but it should not come as a surprise that the company would be conservative,” he said.

Maersk Line has struggled in the past few years as the container shipping industry has been hit by overcapacity and a global economic slowdown.

Analysts are mostly optimistic of a modest pickup in world trade this year, as growth in Asia and recovery in the United States make up for sluggish European markets.

Maersk Line reported a profit of $461 million for 2012, recovering from the previous year’s loss, and the company said it would likely show stronger results in 2013.

Demand for shipping containers is likely to increase around 4 to 5% in 2013, it forecast.

Maersk Oil’s full-year profit, however, was likely to be “significantly” weaker than in 2012, it added.

Chief Executive Nils Andersen said the company would try to improve its finances by cutting costs and selling off marginal businesses. Last year, it sold off its Peregrino oil vessel and Maersk LNG, feeing up $3.4 billion in capital.