A.P. Møller – Mærsk has announced a profit for 2010 of US$5.0 billion, in line with the group’s expected profit.
The company’s oil and gas activities generated a profit of US$1.7 billion. This profit was positively affected by an increase in oil prices of 29%, to an average of US$80 per barrel, and negatively affected by a continued declining production share, primarily in Qatar.
During 2010, the Group maintained a high level of exploration activity with a share in 14 exploration and appraisal wells which resulted in several new discoveries. The Group has obtained new licenses in Greenland, Great Britain, the USA, Brazil and Norway. Furthermore, the Group has invested in significant and promising oil fields in the US Gulf of Mexico and in Brazil.
The tanker market rates were generally low throughout 2010, which is reflected in Maersk Tankers’ loss of US$118 million. The result was furthermore negatively affected by impairment losses of US$111 million.
Maersk Drilling’s profit was US$399 million which was significantly higher than in 2009, primarily due to operation of new semi-submersible rigs and a generally higher activity level. Maersk Drilling completed a large newbuilding programme with the delivery of the most recent semi-submersible rig.
Maersk FPSOs and Maersk LNG had a loss of US$242 million due to lower production for FPSOs and lower rates for LNG as well as impairment losses in both segments of US$271 million.
Maersk Oil expects a higher level of exploration activities than in 2010. The Group’s share of the oil and gas production is expected to decline to around 125 million barrels. Maersk Oil’s result for 2011 is expected to be lower than in 2010 based on an average oil price around US$90 per barrel.
Maersk Tankers operates under very difficult market conditions and freight rates are below breakeven for most segments at the beginning of 2011. Maersk Tankers expects the result excluding impairments to be weak, however, better than in 2010.
At the end of 2010, Maersk Drilling had high contract coverage at attractive rates and expects to contribute with a result above 2010.
Maersk LNG and Maersk FPSOs expect an improved result excluding impairments compared to 2010, primarily due to the start-up of the FPSO Maersk Peregrino offshore Brazil.
Regarding the entire company’s performance, group CEO Nils Andersen was upbeat. “The Group delivers a strong 2010 result, and we are very satisfied. Our people have done a truly great job. We have become more competitive and our improved service across the Group has led to continued increases in customer satisfaction. We have increased our financial strength and are ready to make significant investments in our businesses,” he said.
Maersk Oil’s upstream division currently produces more than 600,000 barrels of oil per day in the Danish and British part of the North Sea, offshore Qatar, Algeria and Kazakhstan.
In addition, Maersk Oil participates in exploration activities in the North Sea (Denmark, United Kingdom and Norway), North Africa (Algeria), West Africa (Angola), the Middle East (Qatar and Oman), Brazil and the US Gulf of Mexico.
