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A.P. Møller - Mærsk A/S
Interim Report3rd Quarter 2011
Registration no. 22756214
Interim Report 3rd Quarter 2011
A.P. Moller - Maersk Group Page
Highlights for the Group during the 3rd quarter 2011 3
Highlights for the Group during the first 9 months 2011 4
Outlook for 2011 5
Financial highlights 6
Business areas 8
Segment overview 9
Container activities 11
Oil and gas activities 16
Terminal activities 20
Tankers, offshore and other shipping activities 23
Retail activities 29
Other businesses 32
Unallocated activities 35
Directors’ statement 37
Interim consolidated financial statements
Condensed income statement 38
Statement of comprehensive income 39
Condensed balance sheet 40
Condensed cash flow statement 42
Statement of changes in equity 43
Notes 45
Forward-looking statements
This interim report contains forward-looking statements. Such
statements are subject to risks and uncertainties as various factors,
many of which are beyond A.P. Møller - Mærsk A/S’ control, may
cause actual development and results to differ materially from
expectations contained in the interim report.
Governing text
The interim report has been translated from Danish. The Danish text
shall govern for all purposes and prevail in case of any discrepancy
with the English version.
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 3 /54
Interim Report 3rd QuarterA.P. Moller - Maersk Group
Highlights for the Group during the 3rd quarter 2011 (figures for Q3 2010 in parenthesis)
2011 2010 Change 2011 2010 Change
Revenue
Profit before depreciation, amortisation and impairment losses, etc.
Depreciation, amortisation and impairment losses
Gain on sale of non-current assets and businesses, net
Profit before financial items
Profit before tax
Profit for the period
Cash flow from operating activities
Cash flow used for capital expenditure
Return on invested capital after tax (ROIC), annualised
DKK million USD million 3rd quarter 3rd quarter
80,794
17,835
6,866
12
11,004
9,459
1,920
11,018
-25,279
4.7%
15,330
3,389
1,302
5
2,096
1,803
371
2,091
-4,775
4.8%
81,249
24,438
8,268
555
16,967
15,869
9,621
17,217
-7,570
15.7%
14,056
4,232
1,429
92
2,938
2,751
1,671
2,993
-1,316
15.7%
-1%
-27%
-17%
-98%
-35%
-40%
-80%
-36%
234%
9%
-20%
-9%
-95%
-29%
-34%
-78%
-30%
263%
The Group’s profit was USD 371m (USD 1,671m) and re-
turn on invested capital (ROIC) was 4.8% (15.7%). Cash
flow from operating activities was USD 2.1bn (USD 3.0bn).
The majority of the Group's businesses performed well
and delivered good returns. The Group's container and
tanker activities continued to face difficult markets due
to excess supply of tonnage and a fragmented competitive
landscape. With an equity ratio of 52% (50%), net interest-
bearing debt of USD 14.5bn (USD 13.7bn) and committed
undrawn credit facilities of USD 9.3bn (USD 9.6bn), the
Group is well prepared and determined to execute on its
long term growth aspirations and seize market opportu-
nities within its core businesses despite current turmoil
in the financial markets.
The Group's Container activities transported 2.1m FFE
(1.8m FFE), 16% higher than in Q3 2010. However, this
was not enough to offset the impact from declining freight
rates leading to a loss for the period of USD 297m (profit
of USD 1,028m). The unsatisfactory market conditions
are a challenge for the liner industry, however Maersk
Line aims to achieve an EBIT-margin 5% point above
peers. Maersk Line launched a new service concept on
the Asia-Europe trade, ’Daily Maersk’, offering daily de-
partures, fixed transportation time and market leading
reliability.
The Group’s Oil and gas activities continue to invest in
building and developing its resource base, and had another
strong earnings quarter with a profit of USD 341m (USD
430m). The profit was negatively affected by higher ex-
ploration costs of USD 336m (USD 166m) and positively
by a higher average oil price of USD 113 per barrel (USD
77 per barrel).
The Chissonga discovery offshore Angola has been de-
clared commercially viable to the local authorities and
appraisal drilling is ongoing to assess the development
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 4 /54
options. Maersk Oil has a 20% share in the Avaldsnes
discovery in Norway, where the operator raised the
estimates of recoverable resources in September 2011,
increasing Maersk Oil’s share from 20-80 million barrels
to 160-360 million barrels of oil equivalents.
The Group's terminal activities continue to show stable
earnings growth and delivered a profit of USD 174m (USD
140m) and a ROIC of 13.5% (11.9%). Container throughput
increased by 10% compared to Q3 2010 on a like-for-like
basis. New concession agreements were secured in Moin,
Costa Rica and Callao, Peru. Furthermore, APM Terminals
won the concession for the Skandia Container Terminal
in Gothenburg, bringing the number of new and expan-
sion terminal projects to 15.
Maersk Tankers continued to face difficult market condi-
tions and posted a loss of USD 37m (USD 11m excluding
impairment loss of USD 107m). The overcapacity in the
crude and product market is expected to continue whereas
the gas market is positively affected by limited new supply.
Maersk Drilling had another strong quarter with a result
of USD 138m (USD 126m), positively affected by high
uptime and a continued increasing demand for efficient
drilling rigs. All rigs were employed during Q3 and are
fully booked for the rest of the year.
Maersk FPSOs and Maersk LNG had full vessel utilisation
during Q3 and posted a profit of USD 59m (loss of USD 5m
excluding USD 67m divestment gain). In October 2011, an
agreement was signed to sell Maersk LNG for USD 1.4bn
on a cash and debt free basis. A potential divestment gain
will not have significant impact on the Group's profit.
Maersk Supply Service benefited from improved spot
rates in the North Sea and a high activity level in Brazil
and delivered a profit of USD 68m (USD 45m).
Svitzer experienced mixed market developments and
slightly improved the profit to USD 34m (USD 33m).
The retail activities continued to be negatively affected by
customers’ migration towards lower margin goods and
made a profit of DKK 208m (DKK 450m).
Other businesses delivered a profit of DKK 64m (DKK
274m).
Highlights for the Group during the first 9 months 2011 (figures for the first nine months of 2010 in parenthesis)
2011 2010 Change 2011 2010 Change
Revenue
Profit before depreciation, amortisation and impairment losses, etc.
Depreciation, amortisation and impairment losses
Gain on sale of non-current assets and businesses, net
Profit before financial items
Profit before tax
Profit for the period
Cash flow from operating activities
Cash flow used for capital expenditure
Return on invested capital after tax (ROIC), annualised
DKK million USD million 9 months 9 months
240,023
61,489
20,935
4,513
45,605
41,928
16,464
32,690
-40,585
9.5%
45,257
11,594
3,947
851
8,599
7,906
3,104
6,164
-7,652
10.0%
234,782
68,152
24,746
3,646
47,486
42,891
23,777
41,748
-18,361
14.5%
41,415
12,022
4,366
643
8,376
7,566
4,194
7,364
-3,239
13.6%
2%
-10%
-15%
24%
-4%
-2%
-31%
-22%
121%
9%
-4%
-10%
32%
3%
4%
-26%
-16%
136%
Revenue increased by 9% to USD 45.3bn (USD 41.4bn),
primarily due to higher oil prices and container volumes.
Profit was 26% lower at USD 3.1bn (USD 4.2bn), negatively
affected by lower freight rates, higher bunker costs and
lower share of the oil production, partly offset by higher
oil price and the divestment gain from the sale of Netto
Foodstores Limited, UK of USD 0.7bn. The Group’s ROIC
was 10.0% (13.6%).
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 5 /54
Cash flow from operating activities was USD 6.2bn (USD
7.4bn), while cash flow used for capital expenditure was
USD 7.7bn (USD 3.2bn). Net interest-bearing debt in-
creased with USD 2.1bn to USD 14.5bn (USD 12.4bn at
31 December 2010).
Total equity was USD 36.5bn (USD 34.4bn at 31 December
2010), positively affected by the profit of USD 3.1bn.
Dividend paid was USD 0.9bn (USD 0.3bn).
Outlook for 2011
The Group still expects a result lower than the 2010
result, as stated in the interim report in August 2011,
including the USD 0.7bn gain from the divestment of
Netto Foodstores Limited, UK. The Group expects a profit
for 2011 in the range of USD 3.1-3.5bn including divest-
ment gains.
The Group’s Container activities now expect a negative
result for the full year as a consequence of lower rates on
especially the Asia-Europe trade.
Oil and gas activities expect a profit at the same level
as for 2010, based on an oil price of USD 105 per barrel,
higher level of exploration activities and a share of the
oil and gas production of around 120 million barrels
which is 13% below 2010.
The result for Terminal activities, Tankers, offshore and
other shipping activities as well as Other businesses is
expected to be above 2010 excluding divestment gains.
For Retail activities the result, excluding divestment gains,
is now expected to be below 2010.
Cash flow from operating activities is expected to develop
in line with the result, while cash flow used for capital
expenditure is expected to be significantly higher than
in 2010.
The outlook for 2011 is subject to uncertainty, not least
due to developments in the global economy, oil price and
global trade conditions.
Copenhagen, 9 November 2011
Contacts: Group CEO Nils S. Andersen – tel. +45 3363 1912
Group CFO Trond Westlie – tel. +45 3363 3106
Annual Report is expected to be announced on 27 February 2012.
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 6 /54
Financial highlights
Amounts in DKK million
3rd quarter 9 months Full year
2011 2010 2011 2010 2010
Revenue
Profit before depreciation, amortisation
and impairment losses, etc.
Depreciation, amortisation and impairment losses
Gain on sale of non-current assets and businesses, net
Associated companies – share of profit/loss for the period
Profit before financial items
Financial items, net
Profit before tax
Tax
Profit for the period – continuing operations
Profit/loss for the period – discontinued operations
Profit for the period
A.P. Møller - Mærsk A/S’ share
Total assets
Total equity
Cash flow from operating activities
Cash flow used for capital expenditure
Investment in property, plant and equipment
Return on invested capital after tax (ROIC), annualised
Return on equity after tax, annualised
Equity ratio
Earnings per share (EPS), DKK
Diluted earnings per share, DKK
Cash flow from operating activities per share, DKK
Share price (B share), end of period, DKK
Total market capitalisation, end of period
The condensed interim consolidated financial statements on pages 38-53 are presented in DKK. To further illustrate the development of
the businesses, key figures for the A.P. Moller - Maersk Group and segment figures are also presented in USD. For the segments where the
primary functional currency is USD, the comments on these segments refer to the USD figures. The comments on the other segments refer
to DKK figures alone.
The interim financial statements have not been subject to audit or review. The interim financial statements are prepared in accordance with
IAS 34. The applied accounting policies are unchanged compared to the Annual Report 2010, except for the changes described in Note 31 of
the 2010 consolidated financial statements, to which reference is made. The changes have no effect on the interim financial statements.
240,023
61,489
20,935
4,513
538
45,605
-3,677
41,928
25,500
16,428
36
16,464
14,256
387,080
200,973
32,690
-40,585
30,500
9.5%
11.1%
51.9%
3,266
3,264
7,488
32,920
140,425
80,794
17,835
6,866
12
23
11,004
-1,545
9,459
7,574
1,885
35
1,920
1,643
387,080
200,973
11,018
-25,279
12,906
4.7%
3.9%
51.9%
376
376
2,524
32,920
140,425
234,782
68,152
24,746
3,646
434
47,486
-4,595
42,891
19,107
23,784
-7
23,777
22,591
368,455
184,391
41,748
-18,361
19,528
14.5%
18.5%
50.0%
5,176
5,173
9,564
45,700
196,732
81,249
24,438
8,268
555
242
16,967
-1,098
15,869
6,246
9,623
-2
9,621
9,196
368,455
184,391
17,217
-7,570
7,026
15.7%
20.7%
50.0%
2,107
2,106
3,944
45,700
196,732
315,396
89,218
33,822
3,792
461
59,649
-5,263
54,386
26,174
28,212
3
28,215
26,455
374,723
192,962
56,972
-26,078
26,683
12.7%
16.0%
51.5%
6,061
6,058
13,052
50,510
217,464
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 7 /54
Financial highlights
Amounts in USD million
3rd quarter 9 months Full year
2011 2010 2011 2010 2010
Revenue
Profit before depreciation, amortisation
and impairment losses, etc.
Depreciation, amortisation and impairment losses
Gain on sale of non-current assets and businesses, net
Associated companies – share of profit/loss for the period
Profit before financial items
Financial items, net
Profit before tax
Tax
Profit for the period – continuing operations
Profit/loss for the period – discontinued operations
Profit for the period
A.P. Møller - Mærsk A/S’ share
Total assets
Total equity
Cash flow from operating activities
Cash flow used for capital expenditure
Investment in property, plant and equipment
Return on invested capital after tax (ROIC), annualised
Return on equity after tax, annualised
Equity ratio
Earnings per share (EPS), USD
Diluted earnings per share, USD
Cash flow from operating activities per share, USD
Share price (B share), end of period, USD
Total market capitalisation, end of period
45,257
11,594
3,947
851
101
8,599
-693
7,906
4,809
3,097
7
3,104
2,688
70,237
36,467
6,164
-7,652
5,751
10.0%
11.7%
51.9%
616
615
1,412
5,973
25,480
15,330
3,389
1,302
5
4
2,096
-293
1,803
1,439
364
7
371
317
70,237
36,467
2,091
-4,775
2,444
4.8%
4.0%
51.9%
73
73
479
5,973
25,480
41,415
12,022
4,366
643
77
8,376
-810
7,566
3,371
4,195
-1
4,194
3,985
67,481
33,771
7,364
-3,239
3,445
13.6%
17.4%
50.0%
913
913
1,687
8,370
36,031
14,056
4,232
1,429
92
43
2,938
-187
2,751
1,080
1,671
-
1,671
1,598
67,481
33,771
2,993
-1,316
1,217
15.7%
20.7%
50.0%
366
366
686
8,370
36,031
56,090
15,867
6,015
674
82
10,608
-936
9,672
4,655
5,017
1
5,018
4,705
66,756
34,376
10,132
-4,638
4,745
12.2%
15.4%
51.5%
1,078
1,077
2,321
8,998
38,741
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 8 /54
Business areasThe A.P. Moller - Maersk Group comprises approximately 1,100 companies. The Group's invested capital at 30 September 2011 was USD 51bn (USD 47bn) and annualised return on invested capital after tax (ROIC) was 10.0% (13.6%).
Container activities
Oil and gas activities
Retail activities
Other businesses
Terminal activities
Tankers, offshore and other shipping activities
Maersk Line, Global container services Safmarine and MCC
Damco Logistic and forwarding activities
Maersk Oil Oil and gas production and exploration activities
The Dansk 68% ownership of Dansk Supermarked Group Supermarked A/S Super-
markets (Føtex and Bilka), department stores (F. Salling) and discount supermarkets (Netto), etc. (subsidiary)
The Odense Steel Shipyard in Denmark Shipyard Group
Danske Bank 20% ownership of Danske Bank A/S (associated company)
Maersk Container Production of dry and Industry reefer containers
Other Star Air, Danbor Service, etc.
APM Terminals Container terminal activities, inland transportation, repair of containers and container depots, etc.
Maersk Tankers Tanker shipping of crude oil, oil products and gas
Maersk Drilling Offshore drilling activities and operation of land rigs through 50% ownership of Egyptian Drilling Company
Maersk FPSOs Floating oil and gas production units
Maersk LNG Natural gas transportation
Maersk Supply Service Supply vessel activities with anchor handling and platform supply vessels, etc.
Svitzer Towing and salvage activities, etc.
Ro/Ro and 39% ownership ofrelated activities Höegh Autoliners and 31%
ownership of DFDS A/S (associated companies)
ROIC %annualised3rd quarter
2011 2010
Invested capital USD million
30 September 2011
ROIC % DKK million
ROIC %annualised
9 months 2011 2010
ROIC %
0.4
24.8
39.0
42.5
12.9
-2.1
12.2
-2.4
10.6
6.3
4.6
17.1
24.3
37.0
13.0
23.0
45.3
37.1
12.7
11.9
-13.7
13.3
8.4
9.1
7.6
-19.9
5.1
-7.2
37.4
28.3
5.9
13.5
-4.1
13.6
8.9
14.5
6.8
5.6
1.0
18,378
307
5,692
14,435
5,136
3,767
4,164
2,679
1,878
1,995
688
26,322 3.7 4.2
17.9
-4.0
10.9
-4.8
11.1
8.1
-12.8
Segment overview
Maersk Container Industry Qingdao China
Finished containers are stacked outside Maersk Container Industry’s production facilities in Qingdao, China. Since 2007 the entire production has taken place in China, where Maersk Container Industry employs more than 5,000 people.
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 10 /54
For the 3rd quarter DKK million USD million
2011 2010 2011 2010
Revenue
Container activities
Oil and gas activities
Terminal activities
Tankers, offshore and other shipping activities
Retail activities
Other businesses
Total reportable segments
Unallocated activities (Maersk Oil Trading)
Eliminations
Total
Profit/loss for the period
Container activities
Oil and gas activities
Terminal activities
Tankers, offshore and other shipping activities
Retail activities
Other businesses
Total reportable segments
Unallocated activities
Eliminations
Discontinued operations, after elimination
Total
For the first 9 months DKK million USD million
2011 2010 2011 2010
Revenue
Container activities
Oil and gas activities
Terminal activities
Tankers, offshore and other shipping activities
Retail activities
Other businesses
Total reportable segments
Unallocated activities (Maersk Oil Trading)
Eliminations
Total
Profit/loss for the period
Container activities
Oil and gas activities
Terminal activities
Tankers, offshore and other shipping activities
Retail activities
Other businesses
Total reportable segments
Unallocated activities
Eliminations
Discontinued operations, after elimination
Total
Segment overview
6,922
2,320
1,049
1,341
2,551
434
14,617
119
-680
14,056
1,028
430
140
109
77
48
1,832
-172
11
-
1,671
7,230
3,012
1,205
1,541
2,504
437
15,929
254
-853
15,330
-297
341
174
276
42
13
549
-183
-2
7
371
39,969
13,441
6,067
7,760
14,753
2,498
84,488
687
-3,926
81,249
5,904
2,487
826
627
450
274
10,568
-1,010
65
-2
9,621
38,119
15,863
6,353
8,121
13,193
2,303
83,952
1,343
-4,501
80,794
-1,583
1,785
922
1,464
208
64
2,860
-963
-12
35
1,920
19,497
7,356
3,142
4,239
7,629
1,041
42,904
333
-1,822
41,415
2,254
1,339
668
280
240
120
4,901
-744
38
-1
4,194
20,474
9,595
3,417
4,337
7,699
1,297
46,819
706
-2,268
45,257
96
1,553
478
526
898
125
3,676
-539
-40
7
3,104
110,531
41,701
17,812
24,024
43,249
5,904
243,221
1,891
-10,330
234,782
12,779
7,591
3,790
1,590
1,362
678
27,790
-4,220
214
-7
23,777
108,587
50,890
18,121
22,998
40,832
6,877
248,305
3,747
-12,029
240,023
508
8,236
2,538
2,793
4,763
661
19,499
-2,858
-213
36
16,464
Container activities
Margrethe MaerskCai Mep Vietnam
Containers are being loaded onto Margrethe Maersk at APM Terminals' new facilities in Cai Mep, Vietnam. Margrethe Maersk was build at Odense Steel Shipyard in 2008 and has a capacity of 9,000 TEU – enough to carry more than 700,000 washing machines.
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 12 /54
For the 3rd quarter DKK million USD million
Highlights 2011 2010 Change 2011 2010 Change
Revenue
Profit before depreciation, amortisation
and impairment losses, etc. (EBITDA)
Depreciation, amortisation and impairment losses
Gain on sale of non-current assets and businesses, net
Associated companies – share of profit/loss for the period
Profit/loss before financial items (EBIT)
Financial items, net
Profit/loss before tax
Tax
Profit/loss for the period
Cash flow from operating activities
Cash flow used for capital expenditure
Return on invested capital after tax (ROIC), annualised
Transported volumes (FFE in million)
Average rate (USD per FFE)
Average fuel price (USD per tonne)
For the first 9 months DKK million USD million
Highlights 2011 2010 Change 2011 2010 Change
Revenue
Profit before depreciation, amortisation
and impairment losses, etc. (EBITDA)
Depreciation, amortisation and impairment losses
Gain on sale of non-current assets and businesses, net
Associated companies – share of profit/loss for the period
Profit before financial items (EBIT)
Financial items, net
Profit before tax
Tax
Profit for the period
Cash flow from operating activities
Cash flow used for capital expenditure
Non-current assets
Current assets
Non-interest bearing liabilities
Invested capital, net
Return on invested capital after tax (ROIC), annualised
Transported volumes (FFE in million)
Average rate (USD per FFE)
Average fuel price (USD per tonne)
Container activities
(figures for Q3 2010 in parenthesis)
38,119
987
2,180
15
-1
-1,179
-170
-1,349
234
-1,583
-20
-6,633
-6.5%
7,230
190
414
3
-
-221
-32
-253
44
-297
-1
-1,255
-6.5%
2.1
2,860
656
39,969
8,838
2,211
20
-
6,647
-219
6,428
524
5,904
9,111
-2,201
23.1%
6,922
1,538
383
3
-
1,158
-38
1,120
92
1,028
1,595
-386
23.3%
1.8
3,251
443
-5%
-89%
-1%
-25%
n/a
n/a
-22%
n/a
-55%
n/a
n/a
201%
4%
-88%
8%
0%
n/a
n/a
-16%
n/a
-52%
n/a
n/a
225%
16%
-12%
48%
108,587
6,777
6,255
641
-12
1,151
59
1,210
702
508
4,905
-12,742
107,451
22,711
27,189
102,973
0.7%
20,474
1,278
1,180
121
-2
217
11
228
132
96
925
-2,403
19,497
4,121
4,933
18,685
0.7%
5.9
2,886
606
110,531
20,711
6,767
139
-6
14,077
-259
13,818
1,039
12,779
15,778
-3,594
99,580
22,389
26,210
95,759
18.3%
19,497
3,653
1,193
24
-1
2,483
-46
2,437
183
2,254
2,783
-634
18,238
4,100
4,800
17,538
17.2%
5.4
3,075
454
-2%
-67%
-8%
361%
100%
-92%
n/a
-91%
-32%
-96%
-69%
255%
8%
1%
4%
8%
5%
-65%
-1%
404%
100%
-91%
n/a
-91%
-28%
-96%
-67%
279%
7%
1%
3%
7%
9%
-6%
33%
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 13 /54
Highlights for Container activities
• TheGrouptransportedatotalvolumeof2.1mFFE(1.8mFFE),anincreaseof16%compared to Q3 2010
• Averagefreightrates,includingbunkersurcharges,were12%lowerthaninQ32010,and6%lower in the first nine months compared to the same period in 2010
• EarningspertransportedFFE(EBITperFFE),excludinggainonsaleofshipsandcontainers, were a loss of USD 124 (a profit of USD 616)
• LosswasUSD297m(profitofUSD1,028m)• CashflowfromoperatingactivitieswasnegativebyUSD1m(positivebyUSD1,595m)• ROICwasnegativeby6.5%(positiveby23.3%)
THE MARKET FOR CONTAINER ACTIVITIES
The development in demand for container transporta-
tion was mixed during Q3. Volumes stagnated in the US
and euro zone as a consequence of the negative develop-
ment in the economies, whereas the positive volume
development continued in growth markets. For the first
nine months, volumes were overall 7% higher than same
period last year (Drewry).
The positive demand growth has not been sufficient to
balance the supply of new capacity, which mainly has
been added in form of larger vessels deployed on the
Asia-Europe trade. The ordinary peak season has not
materialised this year, and the main East-West trades
have been characterised by a fierce competition.
During the first nine months, 224 container vessels with a
combined capacity of 1.6m TEU (Twenty Foot Equivalent
Unit) were ordered (Alphaliner) and the global order book
was 4.5m TEU, equivalent to 30% of the current fleet. As
a result of the tough market conditions, ordering of new
vessels came to a complete stop in Q3.
Overall, freight rates continued the negative development
during Q3 at unsustainable levels.
Despite increasing capacity and declining rates, no signs
of any significant lay-up activity have been seen this year.
A few strings were redrawn from the Asia-Europe and
the Transpacific trades, but still insufficient to balance
the trades.
Container shipping
Highlights 2011 2010 2011 2010
Revenue
Profit before depreciation, amortisation and impairment losses, etc. (EBITDA)
Depreciation, amortisation and impairment losses
Gain on sale of non-current assets and businesses, net
Associated companies – share of profit/loss for the period
Profit/loss before financial items (EBIT)
Profit/loss for the period
Cash flow from operating activities
Cash flow used for capital expenditure
Return on invested capital after tax (ROIC), annualised
Container shipping USD million USD million
3rd quarter 9 months
18,742
1,190
1,164
121
-2
145
50
881
-2,301
0.4%
6,588
150
410
3
-
-257
-322
-53
-1,161
-7.2%
17,820
3,571
1,178
24
-1
2,416
2,214
2,754
-614
17.1%
6,424
1,495
377
3
-
1,121
1,003
1,562
-380
23.0%
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 14 /54
In Q3 the Group transported a total volume of 2.1m FFE
(1.8m FFE), an increase of 16% compared to Q3 2010 and
6% higher than Q2 2011. In the first nine months the
total volume was 5.9m FFE, 9% higher than the same
period last year.
In Q3 average freight rates, including bunker surcharges,
were 12% lower than in Q3 2010 and 6% lower for the
first nine months compared to same period last year.
The volumes between Asia and Europe increased by
24%. Volumes on the head haul routes from Asia in-
creased by 27% and volumes on the back haul routes
from Europe increased by 18% compared to Q3 2010.
Despite the positive volume development on the Asia-
Europe trade, Maersk Line, as the rest of the industry,
was not able to implement the normal peak season
surcharges due to excess capacity.
On the Latin America and Africa trades volumes in-
creased by 18% and 27%, respectively, compared to Q3
2010. Volumes for the Transpacific, Transatlantic,
Oceania and Intra-Asia trades were also higher than
in Q3 2010.
3rd quarter 9 months
Q3 vs. Q3 2011 vs. 2010
Rates Volumes Rates Volumes
Asia – Europe -26% 24% -17% 14%
Africa -2% 27% -2% 18%
Transpacific -16% 2% -3% -4%
Latin America -13% 18% -7% 14%
Transatlantic 1% 1% 3% -1%
Oceania 4% 0% 9% -5%
Intra-Asia 5% 3% 7% 4%
Total -12% 16% -6% 9%
During Q3, the Group took delivery of seven new container
vessels (40,200 TEU) and one new multi purpose vessel
(17,900 deadweight tonnage).
At the end of Q3, the fleet consisted of 252 own container
vessels and 387 chartered container vessels with a total
capacity of 2.5m TEU. In addition, the Group owns two
and has chartered 12 multi purpose vessels. Two con-
tainer vessels (14,800 TEU) and one multi purpose vessel
are expected to be delivered during Q4 and additional 42
container vessels (491,000 TEU) are on order for delivery
in 2012-2015 and three multi purpose vessels in Q1 2012.
The average bunker price for the Group’s container ship-
ping activities was 4% higher in Q3 compared to Q2 and
33% higher for the first nine months compared to same
period last year. The average BAF ratio (% of the change
in bunker costs that are transferred to the customers)
declined to 80% from 86% in the first nine months. As
a consequence of the pressure on freight rates it has be-
come more difficult to pass on the increasing bunker cost
to the customers.
Maersk Line is continuously seeking new ways of op-
timising bunker consumption. One initiative is super
slow steaming, which is primarily used on the backhaul
trades and brings down the service speed to as low as 10
knots, allowing for significant bunker and cost savings.
The strong focus on controlling cost continues. However,
the total unit costs per FFE increased by 1% compared to
Q2, while unit costs, excluding bunker costs, decreased by
1%. For the first nine months the increase was 11% and
5%, respectively, negatively affected by higher oil prices,
an unfavorable development in the USD exchange rate
and higher time charter costs as well as lower capacity
utilisation. Maersk Line is committed and has the scale
to operate at lower cost than its peer group and aims to
achieve an EBIT-margin 5% point above peers.
In September 2011, Maersk Line announced the new
service concept "Daily Maersk" introducing daily depar-
tures from four main ports in Asia to three main ports
in Europe. The service is unique and provides an oppor-
tunity for customers to reduce their supply chain costs,
including inventories and thereby improve their working
capital. Furthermore, shipping with Daily Maersk reduces
CO� emissions by 13% per transported container com-
pared to the industry average on the Asia-Europe trade.
The lost time incidents frequency (LTIF) for the last four
quarters was 1.34 per million working hours.
The loss was USD 322m (profit of USD 1,003m). ROIC was
negative by 7.2% (positive by 23.0%).
Earnings per transported FFE (EBIT), excluding gain on
sale of ships and containers, were a loss of USD 124 per
FFE (profit of USD 616 per FFE).
Cash flow from operating activities was negative by
USD 53m (positive by USD 1,562m), while cash flow used
for capital expenditure was USD 1,161m (USD 380m).
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 15 /54
Damco
Highlights 2011 2010 2011 2010
Revenue
Profit before depreciation, amortisation and impairment losses, etc. (EBITDA)
Depreciation, amortisation and impairment losses
Profit before financial items (EBIT)
Profit for the period
Cash flow from operating activities
Cash flow used for capital expenditure
Return on invested capital after tax (ROIC), annualised
Damco USD million USD million
3rd quarter 9 months
2,155
88
16
72
46
44
-102
24.8%
783
40
4
36
25
52
-94
37.4%
2,036
82
15
67
40
29
-20
24.3%
619
43
6
37
25
33
-6
45.3%
Damco continued to focus on growth and investments
in selected industry segments and emerging markets.
Airfreight services were strengthened considerably with
the acquisition of China based airfreight forwarder NTS
International Transport Services which was completed
in August 2011.
Volumes were lower than anticipated on the back of a
soft market. Damco's ocean volume grew well ahead of
the market at 19% and airfreight volume was up 42%,
primarily driven by the NTS acquisition. The supply
chain management volumes were 4% lower than the
same period last year.
EBIT was USD 36m (USD 37m) and profit was USD 25m
(USD 25m). ROIC was 37.4% (45.3%).
Oil and gas activities
Maersk Oil Dunga field Kazakhstan
Dromedaries are watching the oil pumps operating on the Dunga field which covers 281 square kilometres in western Kazakhstan. Maersk Oil has been active in the country since 2000 and is currently working on a significant development of the Dunga field, including some 200 wells, with planned production start in 2012.
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 17 /54
For the 3rd quarter DKK million USD million
Highlights 2011 2010 Change 2011 2010 Change
Revenue
Profit before exploration costs
Exploration costs
Profit before depreciation, amortisation
and impairment losses, etc. (EBITDA)
Depreciation, amortisation and impairment losses
Gain on sale of non-current assets and businesses, net
Associated companies – share of profit/loss for the period
Profit before financial items (EBIT)
Financial items, net
Profit before tax
Tax
Profit for the period
Cash flow from operating activities
Cash flow used for capital expenditure
Return on invested capital after tax (ROIC), annualised
Average share of oil and gas production
(thousand barrels of oil equivalent per day)
Average crude oil price (Brent) (USD per barrel)
For the first 9 months DKK million USD million
Highlights 2011 2010 Change 2011 2010 Change
Revenue
Profit before exploration costs
Exploration costs
Profit before depreciation, amortisation
and impairment losses, etc. (EBITDA)
Depreciation, amortisation and impairment losses
Gain on sale of non-current assets and businesses, net
Associated companies – share of profit/loss for the period
Profit before financial items (EBIT)
Financial items, net
Profit before tax
Tax
Profit for the period
Cash flow from operating activities
Cash flow used for capital expenditure
Non-current assets
Current assets
Non-interest bearing liabilities
Invested capital, net
Return on invested capital after tax (ROIC), annualised
Average share of oil and gas production
(thousand barrels of oil equivalent per day)
Average crude oil price (Brent) (USD per barrel)
Oil and gas activities
(figures for Q3 2010 in parenthesis)
15,863
13,681
1,777
11,904
2,868
-3
-5
9,028
-84
8,944
7,159
1,785
6,522
-13,567
27.6%
3,012
2,598
336
2,262
543
-1
-1
1,717
-17
1,700
1,359
341
1,239
-2,560
28.3%
312
113
13,441
11,840
948
10,892
3,424
3
-
7,471
-251
7,220
4,733
2,487
5,686
-1,263
37.2%
2,320
2,045
166
1,879
593
1
-
1,287
-44
1,243
813
430
979
-210
37.1%
361
77
18%
16%
87%
9%
-16%
n/a
n/a
21%
-67%
24%
51%
-28%
15%
974%
30%
27%
102%
20%
-8%
n/a
n/a
33%
-61%
37%
67%
-21%
27%
1,119%
-14%
48%
50,890
44,479
3,664
40,815
8,504
-57
-5
32,249
-370
31,879
23,643
8,236
21,091
-16,795
51,777
8,668
29,075
31,370
37.2%
9,595
8,387
691
7,696
1,603
-11
-1
6,081
-70
6,011
4,458
1,553
3,977
-3,167
9,395
1,573
5,276
5,692
39.0%
336
112
41,701
36,542
1,960
34,582
10,062
4
-
24,524
-217
24,307
16,716
7,591
19,353
-8,107
43,606
6,188
25,699
24,095
39.4%
7,356
6,446
346
6,100
1,775
1
-
4,326
-38
4,288
2,949
1,339
3,414
-1,430
7,987
1,133
4,707
4,413
37.0%
377
77
22%
22%
87%
18%
-15%
n/a
n/a
31%
71%
31%
41%
8%
9%
107%
19%
40%
13%
30%
30%
30%
100%
26%
-10%
n/a
n/a
41%
84%
40%
51%
16%
16%
121%
18%
39%
12%
29%
-11%
45%
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 18 /54
Highlights for Oil and gas activities
• Shareofoilandgasproductionwas10%lowercomparedtoQ2.Forthefirstninemonthsthe production was 11% lower than in the same period of 2010, mainly due to lower share of production in Qatar and lower production in Denmark and the UK
• AverageoilpricewasatUSD113perbarrel,3%lowerthaninQ2• ExplorationcostsincreasedtoUSD336m(USD166m)• ProfitwasUSD341m(USD430m)• CashflowfromoperatingactivitieswasUSD1.2bn(USD1.0bn)• ROICwas28.3%(37.1%)
The profit was USD 341m (USD 430m), positively affected
by higher oil prices but offset by higher exploration costs
as well as lower share of production in Qatar and lower pro-
duction in Denmark and the UK. ROIC was 28.3% (37.1%).
PRODUCTION AND DEVELOPMENT
With an average daily share of the oil and gas production
of 312,000 barrels of oil equivalent per day (361,000 bar-
rels per day), the Group’s share for the first nine months
was on average 336,000 barrels of oil equivalent per day.
The decline for the first nine months was 11% compared
to the same period of 2010, due to a lower share of produc-
tion in Qatar and lower production in Denmark and the UK,
partly offset by new production in Brazil.
Safety continued to be on top of the Maersk Oil agenda
and the incident frequency continued to drop. In Maersk
Oil, LTIF for the last four quarters declined by 18% from
1.1 to 0.9 per million working hours. Efforts will continue
to further improve safety performance.
In Qatar, two new wells were put into production, increas-
ing the total number of completed wells under the Al
Shaheen field development to 167 out of the 169 planned
wells. While the evaluation of the field potential is still
ongoing in collaboration with Qatar Petroleum, the field
production level in the range of 300,000 barrels of oil per
day is expected to continue. The Group’s average share
of the oil production was 159,000 barrels per day (170,000
barrels per day), and on average 157,000 barrels per day
in the first nine months, 7% lower than in the same period
of 2010. The decline was primarily due to higher oil prices
resulting in a lower share to recover investments and costs.
In the Danish part of the North Sea, drilling activities
are ongoing or planned at the Dan, Tyra and Valdemar
fields to partly offset the declining production. With
an average share of 71,000 barrels of oil per day (75,000
barrels per day), the Group’s share for the first nine
months averaged 76,000 barrels per day, 7% lower than
in the same period of 2010. In Q3, the Group’s share of
the gas production was 470 million m� (580 million m�),
affected by the normal lower gas demand during the
summer period. The total share of the gas production in
the first nine months was 1.7 billion m� or on average
39,000 barrels of oil equivalent per day, 22% lower than
in the same period of 2010. The lower oil and gas produc-
tion compared to 2010 was caused by decreasing pro-
duction from the mature fields, maintenance activities
and high gas demand in Q1 2010.
In the UK, repair of Maersk Oil’s FPSO at Gryphon is on-
going to reinstate production from the area mid 2012 after
damage during a storm in February 2011. The Group’s
share of production was on average 13,000 barrels of oil
per day (50,000 barrels per day), negatively impacted
by the Gryphon area shut down and the planned main-
tenance shut down on Dumbarton. In total, the produc-
tion share was 29,000 barrels of oil per day in the first
nine months which was 42% less than in the same
period of 2010, mainly due to the Gryphon shut down.
In Algeria, development of the El Merk fields is ongoing
with an expected additional production share of 10,000
barrels of oil per day from 2012. At 25,000 barrels of oil
per day (23,000 barrels per day), the Group’s share of the
production for the first nine months was at the same
level as in 2010.
In Kazakhstan, the Group’s share of the oil production
was at a level of 3,000 barrels of oil per day (4,000 barrels
per day), resulting in a production share of 3,000 barrels
of oil per day for the first nine months. Work continues for
the significant development of the Dunga field, includ-
ing some 200 wells, with start of production of the first
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 19 /54
wells planned for 2012. The share of the production is
expected to reach a level of 15,000 barrels of oil per day.
The previously announced sale of the Saigak field was
approved by the authorities.
In Brazil, the Group’s share of the production was 8,000
barrels of oil per day from the Polvo field in a newly
acquired licence.
EXPLORATION AND BUSINESS DEVELOPMENT
In Q3, drilling of four exploration and appraisal wells was
completed. Overall, Maersk Oil completed eight wells in
2011 and is involved in drilling of further 16 exploration
and appraisal wells, either in progress or committed to
start in 2011 in Angola, Brazil, Kazakhstan, Norway,
Qatar, the UK and the US.
In Angola, the Chissonga discovery has been declared
commercially viable to the local authorities and appraisal
drilling is ongoing to assess the development options.
In Block 23, an exploration well is ongoing and a well is
planned in Block 8 for 2012.
In Brazil, the USD 2.4bn acquisition of shares in three off-
shore licences was completed in July 2011, and drilling
is ongoing in licences BM-C-32/30 to appraise the Itaipu
and Wahoo discoveries. The Itaipu 2 well started in Q3
and the Wahoo 4 well is planned to start in Q4. In ad-
dition, preparations are ongoing to start drilling of two
exploration wells in Q4 in the off-shore licence BM-C-34.
In Iraq, Maersk Oil has acquired a 20% shareholding in
HKN Energy Ltd, which comprises a 75% interest in the
Sarsang Production Sharing Contract in the Kurdistan
Region. HKN drilled an oil discovery well in 2011 which is
expected to be brought into production in 2012.
In Norway, appraisal drilling is ongoing at the Avaldsnes
discovery in the Licence PL501, where the operator
announced a significant increase in the recoverable re-
sources late September 2011, increasing Maersk Oil’s
share from 20-80 million barrels to 160-360 million barrels
of oil equivalents with production potentially to start
in 2017-2018. In addition, preparation to start drilling
of the Zidane appraisal well and the T-Rex exploration
well in Q4 is ongoing. Bids have been submitted for the
Norwegian exploration bid round with results expected
early 2012.
In the UK, submission of a development plan for the
Maersk Oil operated Flyndre/Cawdor discovery areas
in the North Sea is planned for the end of this year.
Appraisal activities are ongoing to determine the extent
of the Culzean, Jackdaw and Courageous discoveries
and further three wells are either ongoing or planned to
commence drilling later this year.
In the US Gulf of Mexico, drilling of the Buckskin ap-
praisal well is ongoing. Drilling of the Oceanographer
exploration well has been postponed until 2012 due to
low rig availability following the moratorium. The Jack
deep-water development project in the Gulf of Mexico
continues to progress towards oil production in 2014,
initially with Maersk Oil's share of production of around
8,000 barrels of oil per day.
Exploration costs were USD 336m (USD 166m) and USD
691m in the first nine months, almost a doubling compared
to the same period of 2010. This reflects Maersk Oil's high
exploration activity, not least the drilling activities in
Angola, Norway and the UK as well as the predevelopment
activities in Angola and the UK, all in accordance with
Maersk Oil’s strategic target of increasing the reserves base.
Terminal activities
APM Terminals Rotterdam The Netherlands
APM Terminals Rotterdam is one of the largest and most significant European terminals in APM Terminals’ portfolio. Its operation includes 13 post panamax cranes on 100 hectares of land and 1,600 metres of quay wall with an annual capacity of 3.4 million TEU.
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 21 /54
For the 3rd quarter DKK million USD million
Highlights 2011 2010 Change 2011 2010 Change
Revenue
Profit before depreciation, amortisation
and impairment losses, etc. (EBITDA)
Depreciation, amortisation and impairment losses
Gain on sale of non-current assets and businesses, net
Associated companies – share of profit/loss for the period
Profit before financial items (EBIT)
Financial items, net
Profit before tax
Tax
Profit for the period
Cash flow from operating activities
Cash flow used for capital expenditure
Return on invested capital after tax (ROIC), annualised
Containers handled
(measured in million TEU and weighted with ownership share)
For the first 9 months DKK million USD million
Highlights 2011 2010 Change 2011 2010 Change
Revenue
Profit before depreciation, amortisation
and impairment losses, etc. (EBITDA)
Depreciation, amortisation and impairment losses
Gain on sale of non-current assets and businesses, net
Associated companies – share of profit/loss for the period
Profit before financial items (EBIT)
Financial items, net
Profit before tax
Tax
Profit for the period
Cash flow from operating activities
Cash flow used for capital expenditure
Non-current assets
Current assets
Non-interest bearing liabilities
Invested capital, net
Return on invested capital after tax (ROIC), annualised
Containers handled
(measured in million TEU and weighted with ownership share)
Terminal activities
(figures for Q3 2010 in parenthesis)
6,353
1,476
486
57
80
1,127
11
1,138
216
922
1,343
-857
13.4%
1,205
280
93
11
16
214
1
215
41
174
255
-163
13.5%
8.6
6,067
1,381
548
158
47
1,038
8
1,046
220
826
1,330
-2,216
12.2%
1,049
239
94
23
9
177
1
178
38
140
230
-393
11.9%
7.8
5%
7%
-11%
-64%
70%
9%
38%
9%
-2%
12%
1%
-61%
15%
17%
-1%
-52%
78%
21%
0%
21%
8%
24%
11%
-59%
11%
18,121
4,204
1,454
95
194
3,039
13
3,052
514
2,538
3,373
-3,067
29,700
4,943
6,337
28,306
12.3%
3,417
793
275
18
37
573
2
575
97
478
636
-578
5,389
897
1,150
5,136
12.9%
24.8
17,812
3,730
1,942
2,559
100
4,447
6
4,453
663
3,790
3,483
-867
27,532
4,770
6,226
26,076
19.1%
3,142
658
343
451
18
784
1
785
117
668
614
-153
5,042
874
1,140
4,776
17.9%
23.5
2%
13%
-25%
-96%
94%
-32%
117%
-31%
-22%
-33%
-3%
254%
8%
4%
2%
9%
9%
21%
-20%
-96%
106%
-27%
100%
-27%
-17%
-28%
4%
278%
7%
3%
1%
8%
5%
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 22 /54
Highlights for Terminal activities
• Numberofcontainershandledwas11%higherthaninQ32010and10%higheronalike-for-likebasis• Volumesfromthirdpartycustomerswereunchangedat46%inQ3aswellasforthefirstninemonths• ProfitwasUSD174m(USD140m)• CashflowfromoperatingactivitieswasUSD255m(USD230m)• ROICwas13.5%(11.9%)
The global container terminal market measured in TEU
increased by 7% compared to Q3 2010 and 7% in the
first nine months compared to the same period last year
(Drewry).
APM Terminals has been growing faster than the global
market. The number of containers handled by APM
Terminals (measured in crane lifts weighted with APM
Terminals’ ownership interest) increased by 11% com-
pared to Q3 2010 and 10% on a like-for-like basis. For the
first nine months the increase was 5% compared to the
same period of 2010 and 8% on a like-for-like basis. The
growth is a result of higher utilisation and positive effect
from active portfolio management.
All regions have contributed positively to the increase,
with strong markets in Africa, China and South East Asia
generating a like-for-like expansion in terminal volumes
of 14% compared to the first nine months of 2010.
During Q3, APM Terminals signed a concession agreement
with the Costa Rican Government to build and operate
the new Moin container terminal on the Caribbean coast,
and APM Terminals also took over operations in Port of
Callao, Peru.
In October 2011, APM Terminals won the concession to
operate the Skandia Container Terminal in Gothenburg
– Sweden’s largest and the 8th busiest North European
container terminal with a throughput of 880,000 TEU
in 2010. The concession includes USD 115m in infra-
structure improvements over the first five years. The
concession is subject to approval from the Swedish
Competition Authority. The transfer of management
and operations for the terminal is anticipated to take
place in Q1 2012.
Safety is on top of APM Terminals' agenda, and the LTIF
was 3.91 per million working hours for the last four quar-
ters. APM Terminals has continued focus on eliminating
accidents and advancing the safety management culture
and systems.
The profit was USD 174m (USD 140m) and USD 478m for
the first nine months. ROIC was 13.5% (11.9%) and reached
12.9% for the first nine months.
The substantial improvement in margins and competi-
tiveness was largely due to consistent implementation
of improved operational methods, enhanced efficiency
in partnership with customers, portfolio optimisation
and restructuring of the inland services.
Tankers, offshore and other shipping activities
Mærsk Deliverer West Africa Offshore Liberia
The semi-submersible rig Mærsk Deliverer is working in deep waters offshore West Africa. The rig is designed for year-round operations in water depths down to 3,000 metres and with a drilling depth of 9,140 metres. The rig can accommodate 180 people.
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 24 /54
For the 3rd quarter DKK million USD million
Highlights 2011 2010 Change 2011 2010 Change
Revenue
Profit before depreciation, amortisation
and impairment losses, etc. (EBITDA)
Depreciation, amortisation and impairment losses
Gain on sale of non-current assets and businesses, net
Associated companies – share of profit/loss for the period
Profit before financial items (EBIT)
Financial items, net
Profit before tax
Tax
Profit for the period
Cash flow from operating activities
Cash flow used for capital expenditure
Return on invested capital after tax (ROIC), annualised
For the first 9 months DKK million USD million
Highlights 2011 2010 Change 2011 2010 Change
Revenue
Profit before depreciation, amortisation
and impairment losses, etc. (EBITDA)
Depreciation, amortisation and impairment losses
Gain on sale of non-current assets and businesses, net
Associated companies – share of profit/loss for the period
Profit before financial items (EBIT)
Financial items, net
Profit before tax
Tax
Profit for the period
Cash flow from operating activities
Cash flow used for capital expenditure
Non-current assets
Current assets
Non-interest bearing liabilities
Invested capital, net
Return on invested capital after tax (ROIC), annualised
Tankers, offshore and other shipping activities
(figures for Q3 2010 in parenthesis)
8,121
2,829
1,156
15
24
1,712
-20
1,692
228
1,464
1,762
-3,104
7.3%
1,541
539
221
4
4
326
-5
321
45
276
335
-587
7.4%
7,760
2,571
1,787
162
16
962
-13
949
322
627
2,354
-1,312
3.0%
1,341
447
311
28
3
167
-1
166
57
109
408
-227
3.0%
5%
10%
-35%
-91%
50%
78%
54%
78%
-29%
107%
-25%
137%
15%
21%
-29%
-86%
33%
95%
400%
93%
-21%
153%
-18%
159%
22,998
7,568
4,234
79
56
3,469
-4
3,465
672
2,793
5,604
-7,657
76,899
16,236
9,615
83,520
4.6%
4,337
1,426
798
15
11
654
-
654
128
526
1,057
-1,443
13,954
2,946
1,744
15,156
4.8%
24,024
6,858
5,120
612
-181
2,169
-8
2,161
571
1,590
5,805
-4,409
79,602
8,686
9,511
78,777
2.8%
4,239
1,211
906
109
-32
382
-1
381
101
280
1,023
-778
14,578
1,591
1,742
14,427
2.6%
-4%
10%
-17%
-87%
n/a
60%
-50%
60%
18%
76%
-3%
74%
-3%
87%
1%
6%
2%
18%
-12%
-86%
n/a
71%
n/a
72%
27%
88%
3%
85%
-4%
85%
0%
5%
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 25 /54
Highlights for Tankers, offshore and other shipping activities
• RevenuewasatUSD1.5bn(USD1.3bn)• Continueddifficulttankermarkets• IncreaseddemandinoffshoreandhighuptimeforMaerskDrilling• ProfitwasUSD276m(USD109m)• CashflowfromoperatingactivitieswasUSD335m(USD408m)• ROICwas7.4%(3.0%)
Maersk Tankers
Highlights 2011 2010 2011 2010
Revenue
Profit before depreciation, amortisation and impairment losses, etc. (EBITDA)
Depreciation, amortisation and impairment losses
Gain on sale of non-current assets and businesses, net
Associated companies – share of profit/loss for the period
Loss before financial items (EBIT)
Loss for the period
Cash flow from operating activities
Cash flow used for capital expenditure
Return on invested capital after tax (ROIC), annualised
Maersk Tankers USD million USD million
3rd quarter 9 months
960
93
164
6
-
-65
-56
37
-517
-2.1%
324
20
60
-
-
-40
-37
22
-220
-4.1%
884
136
270
28
1
-105
-103
98
-130
-4.0%
305
45
163
-
1
-117
-118
25
-86
-13.7%
The unsatisfactory market conditions for Maersk Tankers
continued in Q3.
For crude and product tankers the average earnings were
lower than Q2 and much lower than historical average,
while earnings for the gas segment were higher than Q2
and higher than the historical average.
Both the crude and product tanker markets were driven
by excess supply of tonnage and reduced refinery intake,
resulting in earnings below operating costs. The gas market
was driven by increased exports from the Middle East
resulting in strong earnings in this segment.
The tanker markets are affected by overcapacity, which
is likely to continue as the delivery of new vessels for the
crude and product segments continue and scrapping
activity remains low.
Maersk Tankers took delivery of one VLCC, one handy-
size product tanker and one handysize gas carrier, while
one handysize product tanker and three small product
tankers were purchased in the second-hand market.
Delivery of one handysize product tanker, one handy-
size gas carrier and one VLGC (50% owned) is planned
for Q4 from the newbuilding programme along with two
large second-hand product tankers. Six newbuildings
are expected to be delivered in 2012.
Maersk Tanker’s LTIF for the last four quarters was 1.05
per million working hours.
The loss was USD 37m (loss of USD 118m, negatively im-
pacted by impairment of USD 107m). ROIC was negative
by 4.1% (negative by 13.7%).
The contract coverage for the rest of 2011 is 23.7% and
12.5% for 2012.
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 26 /54
Maersk Drilling
Highlights 2011 2010 2011 2010
Revenue
Profit before depreciation, amortisation and impairment losses, etc. (EBITDA)
Depreciation, amortisation and impairment losses
Profit before financial items (EBIT)
Profit for the period
Cash flow from operating activities
Cash flow used for capital expenditure
Return on invested capital after tax (ROIC), annualised
Maersk Drilling USD million USD million
3rd quarter 9 months
1,372
628
178
450
361
555
-538
12.2%
484
239
68
171
138
162
-242
13.6%
1,209
550
149
401
301
404
-322
10.9%
457
218
56
162
126
146
-57
13.3%
The high oil price has resulted in increased exploration
and production activity from the oil companies, and de-
mand for rigs has remained high with an upward trend.
In particular, demand for modern high specification rigs
continues to strengthen due to operators increasing re-
quirements for safe and efficient equipment.
The Norwegian jack-up market remained solid with full
utilisation, and recent large discoveries in Norway confirm
the positive outlook for the segment. Maersk Drilling cur-
rently has six jack-up rigs in Norway, of which some are
on long-term contracts until 2017. In addition, Maersk
Drilling has two ultra harsh environment jack-up rigs
under construction for this market, and discussions with
operators for drilling campaigns starting in 2014 are
ongoing.
Large discoveries impact the strong market fundamen-
tals positively in the ultra deepwater rig market. The
market has been characterised by close to full utilisation
and day rates have increased during Q3, establishing a
new day rate level around USD 500,000. The increasing
demand was mainly seen from growth regions such as
West Africa and Brazil. The US Gulf of Mexico remains
adversely affected by the Macondo incident. However,
activity was increasing and the ultra deepwater market is
expected to remain firm, also in the longer term, as both
development and exploration activity in the emerging
markets will drive solid future demand. Maersk Drilling
has three ultra deepwater semi-submersible rigs in opera-
tion and four ultra deepwater drillships under construction
with expected deliveries in 2013 and 2014.
During Q3, all of Maersk Drilling’s 26 drilling rigs were em-
ployed, except for a few rigs entering yards for planned
surveys and upgrades.
With the constant focus on employment safety, Maersk
Drilling has experienced a continuous improvement
for the last four quarters with a LTIF of 0.49 per million
working hours.
Maersk Drilling has 99% contract coverage for the re-
mainder of 2011, and more than 75% of the available
capacity for 2012 is already contracted.
The profit of USD 138m (USD 126m) was positively im-
pacted by full employment of the semi-submersible rigs
Maersk Explorer and Mærsk Deliverer. ROIC was 13.6%
(13.3%).
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 27 /54
Maersk FPSOs and Maersk LNG
Highlights 2011 2010 2011 2010
Revenue
Profit before depreciation, amortisation and impairment losses, etc. (EBITDA)
Depreciation, amortisation and impairment losses
Gain on sale of non-current assets and businesses, net
Associated companies – share of profit/loss for the period
Profit/loss before financial items (EBIT)
Profit/loss for the period
Cash flow from operating activities
Cash flow used for capital expenditure
Return on invested capital after tax (ROIC), annualised
Maersk FPSOs and Maersk LNG USD million USD million
3rd quarter 9 months
438
211
256
-1
2
-44
-49
90
-29
-2.4%
170
88
25
-1
1
63
59
12
1
8.9%
308
48
252
67
-1
-138
-109
151
-238
-4.8%
100
30
29
67
-1
67
62
60
-48
8.4%
The activity in the FPSO market has picked up with the
numbers of new contract awards reaching the high level
experienced during the 2005-2007 peak. The rates in the
LNG market increased to a five year high level.
All of the Group’s six FPSOs were fully employed in Q3
and production uptime has improved.
Maersk FPSOs' LTIF was 0.97 and Maersk LNG's LTIF
was 1.47 per million working hours for the last four
quarters.
The profit was USD 59m (loss of USD 5m excluding USD
67m divestment gain) and ROIC was 8.9% (8.4%). The im-
provement was driven by higher LNG rates and contract
coverage as well as the FPSO Maersk Peregrino achieving
full day rate since May 2011. Further, Maersk FPSOs
received a performance bonus of USD 19m while the profit
was negatively impacted by operational losses and extra-
ordinary costs on Maersk Ngujima-Yin.
Maersk LNG was divested for USD 1.4bn on a cash and debt
free basis in October 2011 with closing of the transaction
expected in Q4. A potential divestment gain will not have
significant impact on the Group's profit.
Maersk Supply Service
Highlights 2011 2010 2011 2010
Revenue
Profit before depreciation, amortisation and impairment losses, etc. (EBITDA)
Depreciation, amortisation and impairment losses
Gain on sale of non-current assets and businesses, net
Profit before financial items (EBIT)
Profit for the period
Cash flow from operating activities
Cash flow used for capital expenditure
Return on invested capital after tax (ROIC), annualised
Maersk Supply Service USD million USD million
3rd quarter 9 months
614
273
110
3
166
150
201
-40
10.6%
226
106
36
3
73
68
95
-15
14.5%
590
296
102
-
194
162
251
-119
11.1%
191
89
35
-
54
45
126
-9
9.1%
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 28 /54
The market for anchor handling and supply vessels was
positively affected by seasonal project work in the North
Sea and continued high activity level in Brazil. The rate
level in the North Sea spot market increased with rate
peaks at a level not seen for three years. Other markets
were not affected to the same degree and remained at
the same level as in Q2 due to a more balanced supply
and demand.
Maersk Supply Service had a suitable balance of spot
and contract coverage to benefit from this seasonal spike
in the market. Contract coverage for the remainder of
2011 is 80%, and 36% for 2012.
Maersk Supply Service’s LTIF was 1.02 per million work-
ing hours for the last four quarters.
In line with the fleet renewal program, the anchor handling
vessel Maersk Rider (BHP 14,400) was sold during Q3.
The profit was USD 68m (USD 45m), primarily affected
by seasonal project work in the North Sea and increased
rate level in the spot market. ROIC was 14.5% (9.1%).
Svitzer
Highlights 2011 2010 2011 2010
Revenue
Profit before depreciation, amortisation and impairment losses, etc. (EBITDA)
Depreciation, amortisation and impairment losses
Gain on sale of non-current assets and businesses, net
Associated companies – share of profit/loss for the period
Profit before financial items (EBIT)
Profit for the period
Cash flow from operating activities
Cash flow used for capital expenditure
Return on invested capital after tax (ROIC), annualised
Svitzer USD million USD million
3rd quarter 9 months
715
205
93
3
-
115
91
146
-180
6.3%
244
75
32
1
-
44
34
55
-53
6.8%
629
170
83
20
1
108
106
120
-60
8.1%
228
64
27
2
-
39
33
65
-32
7.6%
The harbour towage market had overall moderate
growth, but weakened in Europe. Within terminal
towage new tenders are seen as a result of growing
global demand for energy infrastructure. Emergency
response and rescue demand was firm whereas ocean
towage and salvage markets remained weak.
Svitzer’s activity within harbour towage was largely
unchanged compared to Q3 last year and slightly lower
compared to Q2 2011. The terminal towage activities
increased with the start-up of the Angola LNG contract.
The emergency response and rescue units saw almost
full vessel utilisation during Q3 and higher rates. Salvage
held on to its market share.
Svitzer’s LTIF for the last four quarters was 0.7 per million
working hours.
The profit was USD 34m (USD 33m) and ROIC was 6.8%
(7.6%).
Ro/Ro and related activities
Ro/Ro and related activities comprise the Group’s owner-
ship interests in DFDS A/S and Höegh Autoliners, etc.
The profit was USD 9m (loss of USD 36m) and ROIC was
5.6% (negative by 19.9%).
Retail activities
Netto Berlin Germany
A truck is about to deliver goods to the nearby Netto stores from the storage facility in Berlin, Germany. The first Netto store outside Denmark opened in Germany in 1990 and with the current 333 stores, Germany is the largest market outside of Denmark.
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 30 /54
For the 3rd quarter DKK million USD million
Highlights 2011 2010 Change 2011 2010 Change
Revenue
Profit before depreciation, amortisation
and impairment losses, etc. (EBITDA)
Depreciation, amortisation and impairment losses
Gain on sale of non-current assets and businesses, net
Profit before financial items (EBIT)
Financial items, net
Profit before tax
Tax
Profit for the period
Cash flow from operating activities
Cash flow used for capital expenditure
Return on invested capital after tax (ROIC), annualised
For the first 9 months DKK million USD million
Highlights 2011 2010 Change 2011 2010 Change
Revenue
Profit before depreciation, amortisation
and impairment losses, etc. (EBITDA)
Depreciation, amortisation and impairment losses
Gain on sale of non-current assets and businesses, net
Profit before financial items (EBIT)
Financial items, net
Profit before tax
Tax
Profit for the period
Cash flow from operating activities
Cash flow used for capital expenditure
Non-current assets
Current assets
Non-interest bearing liabilities
Invested capital, net
Return on invested capital after tax (ROIC), annualised
Number of stores
Retail activities
(figures for Q3 2010 in parenthesis)
13,193
599
123
-79
397
-68
329
121
208
538
-856
5.9%
2,504
113
22
-13
78
-14
64
22
42
102
-158
6.3%
14,753
865
235
-2
628
-3
625
175
450
-113
-582
12.7%
2,551
149
39
-1
109
-1
108
31
77
-23
-100
12.6%
-11%
-31%
-48%
n/a
-37%
n/a
-47%
-31%
-54%
n/a
47%
-2%
-24%
-44%
n/a
-28%
n/a
-41%
-29%
-45%
n/a
58%
40,832
1,922
346
3,697
5,273
-73
5,200
437
4,763
1,649
4,230
16,906
4,703
7,174
14,435
42.5%
7,699
362
65
697
994
-14
980
82
898
311
798
3,068
853
1,302
2,619
44.5%
1,262
43,249
2,440
680
19
1,779
50
1,829
467
1,362
1,795
-1,697
15,198
7,066
7,555
14,709
13.0%
7,629
430
119
3
314
9
323
83
240
317
-299
2,784
1,294
1,384
2,694
12.2%
1,390
-6%
-21%
-49%
n/a
196%
n/a
184%
-6%
250%
-8%
n/a
11%
-33%
-5%
-2%
1%
-16%
-45%
n/a
217%
n/a
203%
-1%
274%
-2%
n/a
10%
-34%
-6%
-3%
-9%
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 31 /54
Highlights for Retail activities
• Revenuewas11%loweratDKK13.2bn(DKK14.8bn),duetothedivestmentofNettoFoodstoresLimited, UK
• ProfitwasDKK208m(DKK450m)• 17newstoreswereopenedduringQ3• ROICwas5.9%(12.7%)
THE RETAIL MARKET
The retail markets in Denmark, Sweden and Poland con-
tinued to experience stagnating sales in Q3, while the
sales in Germany were slightly increasing.
In Denmark the discount chains continued to benefit
from more cost conscious consumers and have taken
further market shares from the ordinary supermarkets
during Q3.
THE DANSK SUPERMARKED GROUP
Revenue for the Dansk Supermarked Group was at
DKK 13,193m (DKK 14,753m), 11% lower than Q3 2010,
due to the divestment of the retail activities in the UK.
Adjusted for this, the revenue decreased by 0.1% and
measured in local currency an increase of 0.5%.
EBITDA was 31% lower than in Q3 2010 due to customer
migration towards lower margin goods and the effect
from the divestment of Netto Foodstores Limited, UK.
Excluding the effect from the divestment of Netto Food-
stores Limited, UK, EBITDA was 24% lower. EBITDA was
negatively affected by start-up costs of a new warehouse.
Cash flow from operating activities was DKK 538m
(negative by DKK 113m).
The profit was DKK 208m (DKK 450m), negatively im-
pacted by lower EBITDA and lower financial income
due to the development in the financial markets and
exchange rates. ROIC was 5.9% (12.7%).
During Q3, 17 new stores were opened.
Other businesses
Maersk Container Industry Qingdao China
An employee is applying the finishing touches on the production of a reefer container to Maersk Line. Maersk Container Industry is market leading within production of reefer containers and has developed a container with a controlled atmosphere, allowing transport of bananas, etc. from the Philippines to Europe.
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 33 /54
For the 3rd quarter DKK million USD million
Highlights 2011 2010 Change 2011 2010 Change
Revenue
Profit before depreciation, amortisation
and impairment losses, etc. (EBITDA)
Depreciation, amortisation and impairment losses
Gain on sale of non-current assets and businesses, net
Associated companies – share of profit/loss for the period
Profit before financial items (EBIT)
Financial items, net
Profit before tax
Tax
Profit for the period
Cash flow from operating activities
Cash flow used for capital expenditure
Return on invested capital after tax (ROIC), annualised
For the first 9 months DKK million USD million
Highlights 2011 2010 Change 2011 2010 Change
Revenue
Profit before depreciation, amortisation
and impairment losses, etc. (EBITDA)
Depreciation, amortisation and impairment losses
Gain on sale of non-current assets and businesses, net
Associated companies – share of profit/loss for the period
Profit before financial items (EBIT)
Financial items, net
Profit before tax
Tax
Profit for the period
Cash flow from operating activities
Cash flow used for capital expenditure
Non-current assets
Current assets
Non-interest bearing liabilities
Invested capital, net
Return on invested capital after tax (ROIC), annualised
Other businesses
(figures for Q3 2010 in parenthesis)
2,303
228
56
-
-75
97
12
109
45
64
156
-25
1.0%
437
43
10
-
-14
19
2
21
8
13
29
-7
1.0%
2,498
133
53
43
179
302
-9
293
19
274
-101
161
5.1%
434
23
9
8
31
53
-2
51
3
48
-18
27
5.1%
-8%
71%
6%
-100%
n/a
-68%
n/a
-63%
137%
-77%
n/a
n/a
1%
87%
11%
-100%
n/a
-64%
n/a
-59%
167%
-73%
n/a
n/a
6,877
593
139
14
305
773
-9
764
103
661
-31
-4,053
26,505
2,207
2,390
26,322
3.7%
1,297
112
26
3
57
146
-2
144
19
125
-6
-764
4,809
401
434
4,776
3.9%
5,904
172
172
163
521
684
-
684
6
678
215
518
22,346
1,974
2,646
21,674
4.2%
1,041
30
30
29
92
121
-
121
1
120
38
91
4,092
362
484
3,970
3.9%
16%
245%
-19%
-91%
-41%
13%
n/a
12%
n/a
-3%
n/a
n/a
19%
12%
-10%
21%
25%
273%
-13%
-90%
-38%
21%
n/a
19%
n/a
4%
n/a
n/a
18%
11%
-10%
20%
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 34 /54
Highlights for Other businesses
• RevenuewasDKK2.3bn(DKK2.5bn)• ProfitwasDKK64m(DKK274m)• ShareoflossfromDanskeBankA/SwasDKK77m(profitofDKK178m)• ROICwas1.0%(5.1%)
The Odense Steel Shipyard Group delivered one Ro/Ro
vessel during Q3. Remaining orders consist of one Ro/Ro
vessel and one frigate with expected delivery around
year-end 2011. Phasing out of the shipbuilding activities
is ongoing according to plan.
The profit was DKK 10m (loss of DKK 27m), positively
affected by a reimbursement of energy taxes from
2002-2010.
Maersk Container Industry experienced a continued
strong reefer market with increased profitability. Pre-
vious years’ under-investment in reefers combined with
the strong cargo conversion from conventional reefer
bulk vessels to reefer containers drove the market.
Maersk Container Industry's patented integrated reefer
concept has strengthened its position in the reefer market
further.
The profit was USD 18m (USD 16m) and ROIC was 34.6%
(31.6%).
The Group’s share of result in Danske Bank A/S for Q3
was a loss of DKK 77m (profit of DKK 178m).
Unallocated activities
Edith Maersk Rotterdam The Netherlands
Edith Maersk is approaching Rotterdam on time after leaving Shanghai four weeks earlier. After offloading she will continue her voyage towards Aarhus, Denmark and Gdansk, Poland, before heading back to Asia. Edith Maersk and her sister vessels are the world’s largest container vessels with a capacity of 15,500 TEU.
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 36 /54
Unallocated activities comprise revenue and costs, etc.
as well as financial items that are not attributed to re-
portable segments, including particularly interest and
exchange rate adjustments on borrowings. Furthermore,
activity in the form of purchase of bunker and lubricat-
ing oil on behalf of companies in the Group, as well as oil
hedging activities that are not allocated to segments,
are included on a net basis in unallocated activities.
The unallocated financial items were negative by USD
232m (negative by USD 99m). This includes negative ex-
change rates adjustments of USD 4m (positive by USD
125m). For the first nine months the unallocated finan-
cial items were negative by USD 621m (negative by USD
732m for the first nine months 2010) and the net interest
expenses including hedging and fair value adjustments
improved by USD 109m, primarily due to lower average net
interest-bearing debt.
For the 3rd quarter DKK million USD million
Highlights 2011 2010 Change 2011 2010 Change
Revenue
Costs including depreciation and amortisation, etc.
Valueadjustmentofoilpricehedges
Loss before financial items (EBIT)
Financial items, net
Loss before tax
Tax
Loss for the period
Cash flow from operating activities
For the first 9 months DKK million USD million
Highlights 2011 2010 Change 2011 2010 Change
Revenue
Costs including depreciation and amortisation, etc.
Valueadjustmentofoilpricehedges
Loss before financial items (EBIT)
Financial items, net
Loss before tax
Tax
Loss for the period
Cash flow from operating activities
Unallocated activities
(figures for Q3 2010 in parenthesis)
1,343
1,531
23
-165
-1,226
-1,391
+428
-963
652
3,747
3,835
-47
-135
-3,293
-3,428
+570
-2,858
-3,935
254
289
4
-31
-232
-263
+80
-183
120
706
722
-9
-25
-621
-646
+107
-539
-742
687
939
39
-213
-594
-807
203
-1,010
-1,168
1,891
2,407
70
-446
-4,150
-4,596
+376
-4,220
-4,803
119
163
7
-37
-99
-136
36
-172
-199
333
424
12
-79
-732
-811
+67
-744
-847
95%
63%
-41%
-23%
106%
72%
n/a
-5%
n/a
98%
59%
n/a
-70%
-21%
-25%
52%
-32%
-18%
113%
77%
-43%
-16%
134%
93%
n/a
6%
n/a
112%
70%
n/a
-68%
-15%
-20%
60%
-28%
-12%
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 37 /54
The interim report for the period 1 January to
30 September 2011 for the A.P. Moller - Maersk Group
has been prepared in accordance with IAS 34 “Interim
Financial Reporting” as adopted by the EU and the
additional Danish disclosure requirements for interim
reports for listed companies. In our opinion the interim
financial statements give a true and fair view of the
Group’s total assets, liabilities and financial position at
30 September 2011 and of the result of the Group’s
activities and cash flows for the period 1 January to
30 September 2011. Furthermore, in our opinion the
Directors’ report (pages 3-36) includes a fair review
of the development and performance of the Group’s
activities and of the Group’s financial position taken
as a whole together with a description of the signifi-
cant risks and uncertainties that the Group faces.
Copenhagen, 9 November 2011
A.P. Møller - Mærsk A/SDirectors’ statement
A.P. Møller
Managing Director:
Board of Directors:
Sir John Bond Arne Karlsson Jan Leschly
Leise Mærsk Mc-Kinney Møller Lars Pallesen John Axel Poulsen
Erik Rasmussen Robert Routs Jan Tøpholm
Michael Pram Rasmussen
Chairman
Ane Mærsk Mc-Kinney Uggla
Vice-chairman
Niels Jacobsen
Vice-chairman
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 38 /54
Condensed income statement
Amounts in DKK million
3rd quarter 9 months Full year
Note 2011 2010 2011 2010 2010
1 Revenue
Profit before depreciation, amortisation
and impairment losses, etc.
Depreciation, amortisation and impairment losses
Gain on sale of non-current assets
and businesses, net
Associated companies
– share of profit/loss for the period
Profit before financial items
Financial items, net
Profit before tax
Tax
Profit for the period – continuing operations
Profit/loss for the period – discontinued operations
1 Profit for the period
Of which:
Non-controlling interests
A.P. Møller - Mærsk A/S’ share
Earnings per share of continuing
operations, DKK
Diluted earnings per share
of continuing operations, DKK
Earnings per share, DKK
Diluted earnings per share, DKK
80,794
17,835
6,866
12
23
11,004
-1,545
9,459
7,574
1,885
35
1,920
277
1,643
368
368
376
376
240,023
61,489
20,935
4,513
538
45,605
-3,677
41,928
25,500
16,428
36
16,464
2,208
14,256
3,257
3,256
3,266
3,264
81,249
24,438
8,268
555
242
16,967
-1,098
15,869
6,246
9,623
-2
9,621
425
9,196
2,107
2,106
2,107
2,106
234,782
68,152
24,746
3,646
434
47,486
-4,595
42,891
19,107
23,784
-7
23,777
1,186
22,591
5,177
5,175
5,176
5,173
315,396
89,218
33,822
3,792
461
59,649
-5,263
54,386
26,174
28,212
3
28,215
1,760
26,455
6,060
6,057
6,061
6,058
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 39 /54
Statement of comprehensive income
Amounts in DKK million
3rd quarter 9 months Full year
Note 2011 2010 2011 2010 2010
1 Profit for the period
Translation from functional currency
to presentation currency:
Translation impact arising during the period
Reclassified to income statement, gain on sale
of non-current assets and businesses, net
Fair value adjustment of other equity investments:
Fair value adjustment for the period
Reclassified to income statement, gain on sale
of non-current assets and businesses, net
Cash flow hedges:
Valueadjustmentofhedgesfortheperiod
Reclassified to income statement:
– revenue
– operating costs
– gain on sale of non-current assets
and businesses, net
– financial expenses
Reclassified to cost of property,
plant and equipment
Share of other comprehensive income of
associated companies, net of tax
Actuarial gains/losses on defined benefit plans, etc.
Tax on other comprehensive income
Other comprehensive income, net of tax
Total comprehensive income for the period
Of which:
Non-controlling interests
A.P. Møller - Mærsk A/S’ share
16,464
-3,408
547
6
-74
-30
-34
-552
-279
521
-8
-167
-
-63
-3,541
12,923
2,121
10,802
1,920
8,095
-
-36
-48
-745
-12
-113
-
178
10
-11
-
35
7,353
9,273
378
8,895
23,777
6,154
264
-141
-2,535
-1,016
30
-146
-
775
17
36
-
16
3,454
27,231
1,430
25,801
9,621
-13,934
264
32
-43
849
1
75
-
90
-23
-12
-
12
-12,689
-3,068
235
-3,303
28,215
10,183
264
-85
-2,515
-903
117
-31
-
974
15
80
-177
30
7,952
36,167
2,099
34,068
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 40 /54
Condensed balance sheet, assets
Amounts in DKK million
30 September 31 December
Note 2011 2010 2010
Intangible assets
Property, plant and equipment
Financial non-current assets
Deferred tax
Total non-current assets
Inventories
Receivables, etc.
Securities
Cash and bank balances
2 Assets held for sale
Total current assets
1 Total assets
26,973
243,824
36,476
5,048
312,321
12,890
40,549
1,856
10,619
8,845
74,759
387,080
14,767
241,528
30,517
5,721
292,533
9,556
41,914
2,054
18,056
4,342
75,922
368,455
14,629
243,666
31,295
5,134
294,724
10,417
38,359
1,986
23,896
5,341
79,999
374,723
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 41 /54
Condensed balance sheet, total equity and liabilities
Amounts in DKK million
30 September 31 December
Note 2011 2010 2010
Equity attributable to A.P. Møller - Mærsk A/S
Non-controlling interests
Total equity
Issued bonds
Bank and other credit institutions, etc.
Other non-current liabilities, etc.
Total non-current liabilities
Bank and other credit institutions, etc.
Other current liabilities, etc.
2 Liabilities associated with assets held for sale
Total current liabilities
1 Total liabilities
Total equity and liabilities
187,917
13,056
200,973
13,775
66,593
25,856
106,224
17,728
59,281
2,874
79,883
186,107
387,080
173,245
11,146
184,391
9,331
80,009
25,591
114,931
11,943
55,710
1,480
69,133
184,064
368,455
181,556
11,406
192,962
13,099
75,322
24,591
113,012
12,641
54,139
1,969
68,749
181,761
374,723
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 42 /54
Condensed cash flow statement
Amounts in DKK million
9 months Full year
2011 2010 2010
Profit before financial items
Non-cash items, etc.
Change in working capital
Cash flow from operating activities before financial items and tax
Financial payments, net
Taxes paid
Cash flow from operating activities
Purchase of intangible assets and property, plant and equipment
Sale of intangible assets and property, plant and equipment
Acquisition/sale of subsidiaries and activities, etc., net
Cash flow used for capital expenditure
Purchase/sale of securities, trading portfolio
Cash flow used for investing activities
Repayment of/proceeds from loans, net
Dividends distributed
Dividends distributed to non-controlling interests
Other equity transactions
Cash flow used for financing activities
Net cash flow from continuing operations
Net cash flow from discontinued operations
Net cash flow for the period
Cash and bank balances 1 January
Currency translation effect on cash and bank balances
Cash and bank balances, end of period
Of which classified as assets held for sale
Cash and bank balances, end of period
Cash and bank balances are included in the order of DKK 4.8bn (DKK 3.8bn) relating
to subsidiaries´cash and bank balances in countries with exchange control or other
restrictions, which means that the funds are not readily available for general use by
the parent company or other subsidiaries.
45,605
12,997
-4,222
54,380
-2,570
-19,120
32,690
-30,204
1,564
-11,945
-40,585
106
-40,479
-611
-4,365
-540
52
-5,464
-13,253
132
-13,121
23,921
-167
10,633
-14
10,619
47,486
19,727
-4,773
62,440
-5,851
-14,841
41,748
-24,254
2,413
3,480
-18,361
406
-17,955
-12,779
-1,419
-240
141
-14,297
9,496
-87
9,409
8,419
329
18,157
-101
18,056
59,649
29,646
-2,430
86,865
-4,652
-25,241
56,972
-30,958
3,347
1,533
-26,078
515
-25,563
-14,377
-1,419
-685
153
-16,328
15,081
-64
15,017
8,419
485
23,921
-25
23,896
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 43 /54
Statement of changes in equity
Amounts in DKK million
2011 A.P. Møller - Mærsk A/S
Share Trans- Reserve Reserve Retained Dividend Total Non- Total capital lation for for earnings for control- equity reserve other hedges distri- ling equity bution inter- invest- ests ments
Equity 1 January 2011 4,396 -5,592 125 -1,764 179,995 4,396 181,556 11,406 192,962
Translation from functional currency
to presentation currency:
Translation impact arising during
the period - -3,604 -4 415 - - -3,193 -215 -3,408
Reclassified to income statement,
gain on sale of non-current assets
and businesses, net - 370 - - - - 370 177 547
Fair value adjustment of other
equity investments:
Fair value adjustment for the period - - 7 - - - 7 -1 6
Reclassified to income statement,
gain on sale of non-current assets
and businesses, net - - -74 - - - -74 - -74
Cash flow hedges:
Valueadjustmentofhedgesfortheperiod - - - -54 - - -54 24 -30
Reclassified to income statement:
– revenue - - - -34 - - -34 - -34
– operating costs - - - -552 - - -552 - -552
– gain on sale of non-current assets
and businesses, net - - - -189 - - -189 -90 -279
– financial expenses - - - 521 - - 521 - 521
Reclassified to cost of property,
plant and equipment - - - -8 - - -8 - -8
Share of other comprehensive income
of associated companies, net of tax - - - - -167 - -167 - -167
Tax on other comprehensive income - - -1 -80 - - -81 18 -63
Other comprehensive income, net of tax - -3,234 -72 19 -167 - -3,454 -87 -3,541
Profit for the period - - - - 14,256 - 14,256 2,208 16,464
Total comprehensive
income for the period - -3,234 -72 19 14,089 - 10,802 2,121 12,923
Dividends to shareholders - - - - 31 -4,396 -4,365 -540 -4,905
Valueofgrantedandsoldshareoptions - - - - 32 - 32 - 32
Acquisition of non-controlling interests - - - - -28 - -28 -7 -35
Acquisition of own shares - - - - -24 - -24 - -24
Sale of own shares - - - - 35 - 35 - 35
Capital increases and decreases - - - - - - - 76 76
Other equity movements - - - - -91 - -91 - -91
Total transactions with shareholders - - - - -45 -4,396 -4,441 -471 -4,912
Equity 30 September 2011 4,396 -8,826 53 -1,745 194,039 - 187,917 13,056 200,973
Acquisition of non-controlling interests relate to a number of minor transactions.
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 44 /54
Statement of changes in equity – continued
Amounts in DKK million
2010 A.P. Møller - Mærsk A/S
Share Trans- Reserve Reserve Retained Dividend Total Non- Total capital lation for for earnings for control- equity reserve other hedges distri- ling equity bution inter- invest- ests ments
Equity 1 January 2010 4,396 -15,079 2,094 -1,894 157,833 1,429 148,779 10,089 158,868
Translation from functional currency
to presentation currency:
Translation impact arising during
the period - 5,236 644 92 - - 5,972 182 6,154
Reclassified to income statement,
gain on sale of non-current assets
and businesses, net - 264 - - - - 264 - 264
Fair value adjustment of other
equity investments:
Fair value adjustment for the period - - -141 - - - -141 - -141
Reclassified to income statement,
gain on sale of non-current assets
and businesses, net - - -2,535 - - - -2,535 - -2,535
Cash flow hedges:
Valueadjustmentofhedgesfortheperiod - - - -1,082 - - -1,082 66 -1,016
Reclassified to income statement:
– revenue - - - 30 - - 30 - 30
– operating costs - - - -146 - - -146 - -146
– financial expenses - - - 774 - - 774 1 775
Reclassified to cost of property,
plant and equipment - - - 14 - - 14 3 17
Share of other comprehensive income
of associated companies, net of tax - - - - 36 - 36 - 36
Tax on other comprehensive income - - 7 17 - - 24 -8 16
Other comprehensive income, net of tax - 5,500 -2,025 -301 36 - 3,210 244 3,454
Profit for the period - - - - 22,591 - 22,591 1,186 23,777
Total comprehensive
income for the period - 5,500 -2,025 -301 22,627 - 25,801 1,430 27,231
Dividends to shareholders - - - - 10 -1,429 -1,419 -240 -1,659
Valueofgrantedandsoldshareoptions - - - - 33 - 33 - 33
Acquisition of non-controlling interests - - - - -21 - -21 -35 -56
Sale of non-controlling interests - - - - 72 - 72 -100 -28
Capital increases and decreases - - - - - - - 2 2
Total transactions with shareholders - - - - 94 -1,429 -1,335 -373 -1,708
Equity 30 September 2010 4,396 -9,579 69 -2,195 180,554 - 173,245 11,146 184,391
Acquisition and sale of non-controlling interests relate to a number of minor transactions.
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 45 /54
Notes
Contents Page
1 Segment information 46
2 Assets held for sale and associated liabilities 47
3 Acquisition/sale of subsidiaries and activities 48
4 Financial risks 50
5 Commitments 51
6 Accounting policies 52
7 New financial reporting requirements 53
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 46 /54
Notes
Amounts in DKK million
1 Segment information
Revenue Profit/loss Revenue Profit/loss for the period for the period
9 months 2011 9 months 2010
Revenue and profit/loss for the period
Container activities
Oil and gas activities
Terminal activities
Tankers, offshore and other shipping activities
Retail activities
Other businesses
Total reportable segments
Unallocated activities
Eliminations
Total continuing operations
Discontinued operations, after eliminations
Total
External Inter- External Inter- segment segment
9 months 2011 9 months 2010
Revenue
Container activities
Oil and gas activities
Terminal activities
Tankers, offshore and other shipping activities
Retail activities
Other businesses
Total reportable segments
Unallocated activities (Maersk Oil Trading)
Eliminations
Total
Assets Liabilities Assets Liabilities
30 September 2011 30 September 2010
Assets and liabilities
Container activities
Oil and gas activities
Terminal activities
Tankers, offshore and other shipping activities
Retail activities
Other businesses
Total reportable segments
Unallocated activities
Eliminations
Total continuing operations
Discontinued operations, after elimination
Total
508
8,236
2,538
2,793
4,763
661
19,499
-2,858
-213
16,428
36
16,464
412
-
7,763
394
-
3,338
11,907
-
-11,907
-
27,189
29,075
6,337
9,615
7,174
2,390
81,780
113,686
-9,443
186,023
84
186,107
110,531
41,701
17,812
24,024
43,249
5,904
243,221
1,891
-10,330
234,782
-
234,782
110,269
41,701
9,472
23,634
43,249
4,588
232,913
1,891
-22
234,782
121,969
49,794
32,302
88,288
22,264
24,320
338,937
35,959
-6,628
368,268
187
368,455
108,587
50,890
18,121
22,998
40,832
6,877
248,305
3,747
-12,029
240,023
-
240,023
108,175
50,890
10,358
22,604
40,832
3,539
236,398
3,747
-122
240,023
130,162
60,445
34,643
93,135
21,609
28,712
368,706
27,990
-9,701
386,995
85
387,080
12,779
7,591
3,790
1,590
1,362
678
27,790
-4,220
214
23,784
-7
23,777
262
-
8,340
390
-
1,316
10,308
-
-10,308
-
26,210
25,699
6,226
9,511
7,555
2,646
77,847
113,011
-6,890
183,968
96
184,064
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 47 /54
1 – continued
Total net impairment losses on intangible assets and property, plant and equipment in the first nine months 2011 totalled DKK 825m
(DKK 2,231m). The net impairment losses in the first nine months 2011 were related primarily to impairment of an FPSO of DKK 1,326m
and reversal of impairment losses of DKK 504m in relation to the reclassification of Maersk LNG to assets held for sale.
Impairment losses in the first nine months 2010 were related primarily to Tankers, offshore and other shipping activities.
Notes
2 Assets held for sale and associated liabilities
Amounts in DKK million (in parenthesis the corresponding figures for 2010)
30 September 31 December
2011 2010 2010
Assets held for sale
Non-current assets
Current assets
Total
Liabilities associated with assets held for sale
Provisions
Other liabilities
Total
Assets held for sale primarily relate to Maersk LNG, two terminals and seven container vessels, of which four are owned and three are held
under finance leases.
The sale of Netto Foodstores Limited, UK was completed 13 April 2011 with a gain of DKK 3.8bn including an accumulated exchange rate
loss of DKK 0.5bn previously recognised in equity. Furthermore, one tanker vessel was sold in 2011.
Impairment losses of DKK 0m (DKK 260m) have been recognised for assets held for sale.
At 30 September 2010, assets held for sale primarily included Netto Foodstores Limited, UK, one tanker vessel and seven container vessels,
of which four were owned and three were held under finance leases.
Amounts in DKK million (in parenthesis the corresponding figures for 2010)
8,743
102
8,845
99
2,775
2,874
3,791
551
4,342
83
1,397
1,480
4,765
576
5,341
70
1,899
1,969
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 48 /54
Notes
Amounts in DKK million
3 Acquisition/sale of subsidiaries and activities
Acquisitions during the first 9 months 2011 Poti Sea SK do NTS Inter- Other Total Port Corp. Brasil national Ltda. Transport Services Co. Ltd.
Fair value at time of acquisition
Non-current assets
Current assets
Provisions
Liabilities
Net assets acquired
Goodwill
Acquisition cost
Change in payable acquisition cost
Contingent consideration recognised
Contingent consideration paid
Paid in prior years
Cash and bank balances assumed
Cash flow from acquisition of
subsidiares and activities
The purchase price allocations as of 30 September 2011 are provisionally determined as not all information for determining the fair value of
assets and liabilities is available at this point in time.
If the acquisitions during the period had occurred 1 January 2011, the Group's revenue and profit would not have been materially different.
Poti Sea Port Corp.
On 14 May 2011, the Group acquired 100% of the shares in Poti Sea Port Corp., which owns and operates the Poti Black Sea port.
The acquisition is in line with the Group’s strategy, which aims for APM Terminals to be the leading global port operator. Eastern Europe
is the fastest growing container activity region in the world with double digit growth forecast for the next three years.
The total acquisition cost was DKK 1,044m, including a contingent consideration of DKK 128m. The contingent consideration is dependent on
future financial and operational performance of the company and is estimated to range between DKK 14m and DKK 292m (undiscounted).
From the acquisition date to 30 September 2011, Poti Sea Port Corp. contributed with revenue of DKK 89m and a profit for the period of DKK 34m.
SK do Brasil Ltda.
On 21 July 2011, the Group acquired 100% of the shares in SK do Brasil Ltda, which owns shares in three offshore oil licences in Brazil. The
acquisition is in line with the Group’s strategy, which aims for Maersk Oil to stabilise production by 2014 and thereafter gradually grow to
reach a stable production level at 400,000 barrels of oil equivalents per day.
From the acquisition date to 30 September 2011, SK do Brasil Ltda. contributed with revenue of DKK 141m and a loss for the period of DKK
244m mainly due to exploration activities.
-
3
-
-
3
-
3
-2
-
54
-
3
56
145
445
-
265
325
373
698
113
136
-
-
24
425
12,845
855
203
442
13,055
-
13,055
-
-
-
1,061
474
11,520
1,217
148
-
321
1,044
-
1,044
-
128
-
-
38
878
14,207
1,451
203
1,028
14,427
373
14,800
111
264
54
1,061
539
12,879
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 49 /54
Notes
Amounts in DKK million
3 – continued
NTS International Transport Services Co. Ltd.
On 18 August 2011, the Group acquired 100% of the shares in NTS International Transport Services Co. Ltd. The acquisition will considerably
strengthen Damco’s rendering of global airfreight service.
The total acquisition cost was DKK 698m, including a contingent consideration of DKK 136m. The contingent consideration is dependent on
future financial and operational performance of the company and is estimated to range between DKK 86m and DKK 259m (undiscounted).
Current assets include trade receivables with a fair value of DKK 288m. The gross amount due under the contracts is not materially different
from the fair value.
The goodwill of DKK 373m is attributable to synergies between Damco’s customer base and NTS International Transport Services Co. Ltd.’s
airfreight services and is not deductable for tax purposes.
From the acquisition date to 30 September 2011, NTS International Transport Services Co. Ltd. contributed with revenue of DKK 296m and a
profit for the period of DKK 1m.
Acquisitions during the first 9 months 2010
No acquisitions of subsidiaries or activities to an extent of any significance to the Group were undertaken in the first nine months 2010.
Sales during the first nine months 2011 2010
Carrying amount
Non-current assets
Current assets
Provisions
Liabilities
Net assets sold
Non-controlling interests
A.P. Møller - Mærsk A/S’ share
Gain/loss on sale 1
Proceeds from sale
Change in receivable proceeds, etc.
Non-cash items
Cash and bank balances sold
Cash flow from sale of subsidiaries and activities
1 Excluding accumulated exchange rate loss previously recognised in equity.
Sales during the first nine months 2011 primarily comprised of Netto Foodstores Limited, UK. The sale was completed 13 April 2011
with a gain of DKK 3.8bn including an accumulated exchange rate loss of DKK 0.5bn previously recognised in equity.
Salesduringthefirstninemonths2010mainlyconsistedofNorfolkHoldingsB.V.aswellaspartialsaleofGujaratPipavavPortLimited,
K/S Membrane 1 and K/S Membrane 2 by which control of these companies was lost.
2,490
442
-
540
2,392
-
2,392
4,305
6,697
49
-
95
6,553
6,324
2,109
86
5,783
2,564
250
2,314
708
3,022
214
2,247
559
2
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 50 /54
Notes
4 Financial risks
Currency risk
An increase in the USD exchange rate of 10% against all other significant currencies, to which the Group is exposed, is not expected to have
a material effect on the Group’s profit for the fourth quarter 2011. An increase in the USD exchange rate of 10% against all other significant
currencies to which the Group is exposed is, all other things being equal, estimated to have a positive effect of approximately DKK 13bn in
equity including effect of translation from USD to DKK.
Interest rate risk
A general increase in interest rates by one percentage point is estimated, all other things being equal, to affect the Group’s profit before tax
for the fourth quarter 2011 negatively by DKK 18m, corresponding to USD 3m. The effect on equity, excluding tax effect, is estimated to be
positive by DKK 364m, corresponding to USD 66m.
Liquidity risk
DKK million USD million
30 September 31 December 30 September 31 December
2011 2010 2010 2011 2010 2010
Interest-bearing debt
Net interest-bearing debt
Liquidity buffers 1
1 Liquidity buffers are defined as cash and bank balances, securities and undrawn committed revolving facilities.
Based on the liquidity reserve, the size of the committed loan facilities, including loans for the financing of specific assets, the maturity of
outstanding loans, and the current investment profile, the Group's financial resources are deemed satisfactory. The intention is to continue
to maintain a conservative financial profile corresponding to a strong “investment grade” company through the business cycle with a strong
liquidity position in order to withstand fluctuations in the economy, and have the strength to exploit new and attractive investment opportunities.
The average term to maturity of loan facilities in the Group was more than five years (more than five years) at 30 September 2011.
Market risks
Freight rates and cargo volumes
Shipping activities are very sensitive to economic fluctuations. Freight rates and cargo volumes are sensitive to developments in international
trade, including the geographical distribution and the supply of tonnage. The Group’s profit is very sensitive to changes in volumes and rates.
All other things being equal, this can be illustrated by the following estimated sensitivities (effect on profit for the fourth quarter 2011):
• Changeincontainerfreightrateof+/-100USD/FFE:+/-USD210m
• Changeincontainerfreightvolumeof+/-100,000FFE:+/-USD160m
Oil price
For the Oil and gas activities, an increase in the crude oil price by USD 10 per barrel is estimated to have a positive effect on the Group's profit
for the fourth quarter 2011 in the order of USD 70m based on current oil prices and all other things being equal.
Asdescribedintheconsolidatedfinancialstatementsfor2010,itisdifficulttoprovideapreciseoverviewoftheGroup'sexposuretochanges
in the bunker price. Assuming that the average BAF ratio is 85% (85% of the change in bunker costs are transferred to the customers), an
increase in oil prices by USD 10 per barrel will, based on current bunker prices and all other things being equal, have a negative effect on the
Group's profit for the fourth quarter 2011 in the order of USD 30m.
Amounts in DKK million (in parenthesis the corresponding figures for 2010)
18,549
13,675
13,273
17,800
14,499
11,539
101,062
69,694
81,332
101,283
74,667
72,469
98,096
79,905
63,591
18,003
12,416
14,489
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 51 /54
Notes
5 Commitments
Operating lease commitments
At 30 September 2011, the net present value of operating lease commitments totalled DKK 68.0bn (USD 12.3bn) using a discount rate of
6%, a small decrease from DKK 68.5bn (USD 12.2bn) at 31 December 2010. The amount is divided into the following main items:
• CommitmentsregardingContaineractivitiesandTankers,offshoreandothershippingactivitiesofDKK41.6bn(USD7.5bn)
• CommitmentsregardingTerminalactivitiesofDKK21.5bn(USD3.9bn)
• OthercommitmentsofDKK4.9bn(USD0.9bn)
About one-third of the time charter payments in Container activities and Tankers, offshore and other shipping activities are estimated to
relate to operating costs for the assets.
Capital commitments
Container Oil and Terminal Tankers, Retail Other Total activities gas activities offshore activities activities and other shipping activities
30 September 2011
Capital commitments relating to
acquisition of non-current assets
Commitments towards
concession grantors
Total
31 December 2010
Capital commitments relating to
acquisition of non-current assets
Commitments towards
concession grantors
Total
Amounts in DKK million
1,137
-
1,137
1,334
-
1,334
1,684
-
1,684
14
-
14
57,692
16,862
74,554
42,022
8,966
50,988
19,690
-
19,690
4,725
-
4,725
1,922
11,959
13,881
3,134
5,217
8,351
4,155
4,903
9,058
16,293
3,749
20,042
29,104
-
29,104
16,522
-
16,522
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 52 /54
Notes
5 – continued
No.
Newbuilding programme 2011 2012 2013 2014- Total
Container vessels, etc.
Tanker vessels
Rigs and drillships
Tugboats and standby vessels, etc.
Total
DKK million
Capital commitments relating to the newbuilding programme 2011 2012 2013 2014- Total
Container vessels, etc.
Tanker vessels
Rigs and drillships
Tugboats and standby vessels, etc.
Total
The increase in capital commitments primarily relates to contracts for 20 new container vessels (Triple-E) at a total price of DKK 19.6bn (USD
3.8bn) as well as contracts for four drillships and two jack-up rigs at a total price of DKK 16.0bn (USD 2.9bn). The increase is partly offset by
contractual payments during 2011, including the acquisition of SK do Brasil Ltda.
DKK 46.2bn (USD 8.4bn) of the total capital commitments relate to the newbuilding programme for ships, rigs, etc. at a total contract price
of DKK 59.5bn (USD 10.8bn) including owner-furnished equipment. The remaining capital commitments of DKK 28.4bn (USD 5.1bn) relate to
investments mainly within Terminal activities and Oil and gas activities.
The capital commitments will be financed by cash flow from operating activities as well as existing and new loan facilities.
6 Accounting policies
The interim consolidated financial statements have been prepared in accordance with IAS 34 as adopted by the EU and the additional Danish
disclosure requirements for listed companies. The accounting policies are unchanged from the 2010 financial statements, except for the
changes described in Note 31 of the 2010 consolidated financial statements, to which reference is made. The changes have no effect on the
interim financial statements.
Amounts in DKK million
14
-
3
-
17
10,184
-
4,459
-
14,643
10
-
3
2
15
7,800
-
9,338
28
17,166
21
3
-
13
37
9,142
718
2,261
358
12,479
3
2
-
10
15
1,562
114
-
203
1,879
48
5
6
25
84
28,688
832
16,058
589
46,167
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 53 /54
Notes
7 New financial reporting requirements
In May 2011, IASB issued new IFRS 10-12 and amendments to IAS 27-28, and superseded IAS 31 and SIC-12 with effect from 2013.
The new requirements relate to consolidation and include a detailed explanation of the concept of control as well as increased disclosure
requirements. The rules for the treatment of jointly controlled entities have changed, so that investments are treated similarly to associated
companies and may only be consolidated proportionally in some cases. An analysis of the implications of the new regulation is in progress.
The change to the accounting treatment of jointly controlled entities is expected to have effect on the Group’s revenue and total assets, but
will have no effect on the Group’s profit and total equity. The Group’s jointly controlled entities are mainly operating in Oil and gas activities
and Terminal activities.
In 2011, the IASB also issued a new IFRS 13 and amended IAS 1 and IAS 19 with effect from 2013. IAS 19 changes the calculation of defined
benefit pension costs, with an insignificant impact on the Group's profit. IFRS 13 comprises general rules for the calculation of fair values,
which do not change current practice, and IAS 1 will result in a change to the presentation of items in other comprehensive income.
None of the changes have yet been adopted by the EU.
A.P. Moller - Maersk Group Interim Report 3rd Quarter 2011 54 /54
A.P. Møller - Mærsk A/S
Registration no. 22756214
Managing Director:
A.P. Møller
Esplanaden 50
DK-1098 Copenhagen K
Tel. +45 33 63 33 63
www.maersk.com
investorrelations@maersk.com
Board of Directors:
Michael Pram Rasmussen, Chairman
NielsJacobsen,Vice-chairman
AneMærskMc-KinneyUggla,Vice-chairman
Sir John Bond
Arne Karlsson
Jan Leschly
Leise Mærsk Mc-Kinney Møller
Lars Pallesen
John Axel Poulsen
Erik Rasmussen
Robert Routs
Jan Tøpholm
Audit Committee:
Jan Tøpholm, Chairman
Lars Pallesen
Leise Mærsk Mc-Kinney Møller
Remuneration Committee:
Michael Pram Rasmussen, Chairman
Niels Jacobsen
Ane Mærsk Mc-Kinney Uggla
Auditors:
KPMG
Statsautoriseret Revisionspartnerselskab
PricewaterhouseCoopers Danmark
Statsautoriseret Revisionsaktieselskab
EditorsHans Christian AagaardJesper CramonTrine GramHenrik Lund
Design and layoute-Types & India
ISSN: 1604-2913
Produced in Denmark 2011
Colophon
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