Thu 15 Aug 2019, 10:28 GMT

Maersk posts higher average bunker price, lower consumption


As a result, fuel costs rose marginally (0.4%) in Q2 and declined by 2% in H1.


Image credit: Maersk
A.P Moller - Maersk reports that the average bunker price rose year-on-year (YoY) by $35, or 8.7 percent, to $436 per tonne during the second quarter (Q2) of 2019.

For the first six months (H1), the mean bunker price was $426 per tonne, which was $35 - or 9.0 percent - higher than the $391-per-tonne figure recorded in the prior-year period.

Maersk: Average bunker price

2019 ($/mt) 2018 ($/mt)
Q2 436 401
H1 426 391
Source: Maersk


However, whilst bunker prices were higher, the total amount of marine fuel consumed by Maersk in Q2 fell by 225,000 tonnes, or 7.5 percent, to 2.777m tonnes; and in H1, bunker use declined by 615,000 tonnes, or 10.0 percent, to 5.516m tonnes.

Maersk: Bunker consumption

2019 (MMT) 2018 (MMT)
Q2 2.777 3.002
H1 5.516 6.131
Source: Maersk


As a result, the overall spend on marine fuels was up marginally by $5m, or 0.4 percent, to $1.210bn. In H1, meanwhile, bunker costs decreased by $47m, or 2.0 percent, to $2.352bn.

Maersk: Bunker costs

2019 ($bn) 2018 ($bn)
Q2 1.210 1.205
H1 2.352 2.399
Source: Maersk


Ocean EBITDA and revenue

The Ocean division achieved an increase in Q2 revenue of $198m, or 2.8 percent, to $7.15bn. In H1, sales climbed $317m, or 2.3 percent, to $14.079bn.

EBITA, meanwhile, rose YoY by $212m, or 24.8 percent, to $1.068bn in Q2, and by $487m, or 32.3 percent, to $1.995bn in H1.

Maersk's Ocean segment includes the ocean activities of Maersk's Liner Business (Maersk Line, MCC, Seago Line and Sealand) together with Hamburg Sud brands Hamburg Sud and Alianca as well as strategic transshipment hubs under the APM Terminals brand.

A.P. Moller - Maersk: key results

Maersk posted a Q2 underlying profit of $134m - up $119m on the previous year's figure. In H1, the Danish firm achieved a profit of $65m, compared to the $314m loss posted in H1 2018.

EBITDA in Q2 increased YoY by $195m, or 16.8 percent, to $1.357bn; and half-year EBITDA climbed $500m, or 23.9 percent, to $2.593bn.

Revenue in Q2 rose YoY by $59m, or 0.6 percent, to $9.627bn, whilst in H1 it grew $294m, or 1.6 percent, to $19.167bn.

Guidance

In its guidance for 2019, Maersk said that a $100 change in the price of bunker fuel (net of expected BAF coverage) would lead to the group's EBITDA varying by $200m.

Maersk maintains that it still expects to post an EBITDA of around $5.0bn in 2019.


Steel-cutting ceremony for bunker vessel. Maritima holds steel-cutting ceremony for Cap Morgiou, first of two Petroineos bunker vessels  

Construction starts on bunker vessel able to carry conventional and low-carbon marine fuels, with delivery expected in early 2028.

MPA and SIBCON 2026 logos. Singapore launches series of measures at SIBCON 2026  

MPA announces LNG storage licences, digital bunkering grants and electric harbour craft incentives at 24th conference.

SIBCON 2026 pre-conference event. VPS outlines marine fuel standards and quality data at SIBCON 2026  

VPS's Rahul Choudhuri addresses Singapore's evolving fuel standards and the quality of conventional fuels and biofuels.

MPA and Enterprise Singapore logos. Singapore launches ammonia bunkering code and new standards for fuel sampling and polymer testing  

MPA and Enterprise Singapore introduce one standard and two technical references at SIBCON.

MPA, CMA CGM and SLNG sign MoU. MPA, CMA CGM and SLNG sign MoU to explore liquefied biomethane as a marine fuel in Singapore  

Three-way agreement will examine certification, supply and bunkering of LBM using Singapore's existing LNG infrastructure.

ROC logo. ROC wins order for PSVs featuring replaceable containerised battery system  

Nantong Rainbow Offshore secures 1+1 contract for 4,000 DWT platform supply vessels.

Alisios vessel. Axpo completes first LNG bunkering in Valencia, with over half bio-LNG  

Ship-to-ship transfer to a container vessel makes Valencia the company's fourth Spanish port for LNG bunkering.

Christening ceremony of Makua vessel. Matson christens Makua, first of three LNG-ready Aloha Class container ships  

Dual-fuel vessel, due for delivery in early 2027, is the first of three ships worth around $1bn.

CMB.Tech logo. CMB.Tech seeks Singapore-based ammonia operations manager for Asia Pacific  

New hire will oversee ammonia chartering and bunkering and liaise with Far East partners.

Lumi Aurora vessel. IINO Lines deploys first Ice Class IB VLGC on long-term charter to Borouge International  

LPG-fuelled Lumi Aurora will carry North American gas to Borouge International's Porvoo plant in Finland.