*Net revenue DKK 88,041 million (DKK 76,939 million) – an increase of 14%. In USD the increase was 20%.
*Result before tax DKK 16,542 million (DKK 14,470 million) – an increase of 14%. In USD the increase was 20%.
*Total result for the period DKK 10,760 million (DKK 10,197 million). In USD 1,856 million (USD 1,683 million).
Container shipping and related activities ；
The growth in world trade continued in the first half year 2005 and lead to increased volumes and freight rates compared to the same period in 2004.
In the first half year the demand for vessel capacity was so high that it exceeded the growth in the world fleet. As a consequence rates for chartered container vessels increased from an already high level, also fuel prices rose resulting in increased operating expenses for the shipping lines. The lower USD exchange rate also contributed to increased costs.
Maersk Sealand made a number of changes in the service network to better fulfil customer demands. The situation in 2004 with port delays, especially on the US West Coast, seems to be overcome, and schedules are improving on the US West Coast and in general.
The total result before tax for Maersk Sealand’s container services was well above that of the first half year in 2004. In the first half year of 2004, taxes were positively affected by reduction of deferred tax as a consequence of the merger with leasing companies previously owned by the Dansk Supermarked Group.
In the first half year one newbuild container vessel was delivered, and a number of vessels, including newbuildings, entered the operating fleet through charter. The number of containers increased during the first six months due to a large number of newbuild dry and reefer containers, the latter from Maersk Container Industri in Denmark and China.
The purchase of 19% of the share capital in Royal P&O Nedlloyd N.V. at DKK 3.2 billion is included in the period’s cash flow. Significant new tonnage will be added in the coming years in accordance with newbuilding contracts which have already been entered into.
In the first half year Safmarine Container Lines increased revenue and had a result somewhat above that of the corresponding period in 2004. Safmarine took delivery of one newbuild container vessel in the first half year.
Earnings of the Maersk Sealand agencies and trucking and equipment activities were above that of the corresponding period in 2004, also due to higher rates and volumes in the first six months of the year.
The activity in Maersk Logistics grew moderately and the result was below that of the first half year 2004.
In the first half year APM Terminals has continued its expansion through new projects and purchase of container terminals and further development of existing facilities. Building of an additional terminal in Laem Chabang (Thailand) was initiated in partnership with local investors. Shares in existing terminals in Itajai (Brazil) and Abidjan (Ivory Coast) were acquired. The ownership share in the port at Pipavav (India) was increased. Further development of terminals in Tanjung Pelepas (Malaysia) and Salalah (Oman) and others was initiated. In the first half year the total result for APM Terminals was at the level of the result for the corresponding period in 2004.
Oil and Gas Activities ；
In the Danish part of the North Sea the A.P. Moller - Maersk Group’s share of DUC’s oil production was 22 million barrels in the first six months of the year, which was at the level of that in the same period 2004. The share of gas sales 1.9 billion m3 was considerably above the 1.4 billion m3 in the same period 2004. The increase was in particular due to sale of gas to the Dutch distribution system through the new gas pipeline from Tyra West.
On average, A.P. Møller – Mærsk, as operator for DUC, has had three drilling rigs employed in the North Sea mainly for drilling of production wells on the Halfdan, Dan and Tyra Fields. A new platform, Dan FG, was installed on the Dan Field in May 2005.
In Qatar the A.P. Moller - Maersk Group’s share of production was 14 million barrels compared to 21 million barrels in the first half year 2004 and in Algeria 5.6 million barrels compared to 5.3 million barrels. In Algeria further development of producing fields and new fields is in progress. Production in Qatar and Algeria is still subject to limitations set by the authorities.
Oil production in Kazakhstan was 0.6 million barrels compared to 1.0 million barrels in the first half year 2004.
In the first six months of the year the average market price for the North Sea oil (Brent oil) was USD 50 per barrel compared to USD 34 per barrel in the first half year of 2004. The prices for natural gas were higher than those of the first half year 2004. The market price for Brent oil is also the marker price for the oil from Algeria. In the first six months, the market price for oil in Qatar (Dubai oil) was USD 45 per barrel compared to USD 31 per barrel in the first half year 2004. However, for the A.P. Moller - Maersk Group, the realised prices in DKK were negatively affected by the lower USD exchange rate and the effect of oil price hedging.