Interim Report for A.P. Møller - Mærsk A/S

A.P. Møller - Mærsk A/S recently released its 2006 Interim Report. The company’s half-year revenue is $29.9b, compared with $15.1b from 2005. Profit before depreciation, amortization, etc. is $4.4b compared with last year’s $3.6b. Profit before tax is $2.9b and profit for the period $1.2b. The half year is particularly affected by the following factors: Revenue, costs, depreciation, amortization and financial items are affected by the acquisition of P&O Nedlloyd and oil interests from Kerr-McGee, which are included as from August 11, 2005 and November 17, 2005 respectively; Maersk Line has not obtained a share of the general market growth during the first half year 2006; Rates for the container services were on average approximately 5 percent lower including bunkers adjustment factor compared to the first half year 2005; Highly increased costs for bunkers which are only partly compensated by bunkers adjustment factor; 38 percent higher crude oil prices compared to the first half year 2005; Highly increased government shares and taxes in the oil and gas activities; Changed depreciation periods with a positive effect on the profit for the period of approx. $360.8m; A dollar exchange rate which on average was 5 percent above that of the first half year in 2005 with positive effect on the revenue (in kroner) and the operating result for the period. As from January 1 to June 30, 2006 the dollar exchange rate has declined approximately 8 percent compared to the kroner with a negative effect for the Group’s equity. The total revenue for the A.P. Moller - Maersk Group is expected to be at the level of $46.4b. For the year 2006 the result for the group after tax is expected to be in the order of $2.7b compared to that in 2005 of $3.5b which is in accordance with the statement of June 27, 2006. Cash flow from operating activities is now expected to be in the order of $4.3b (2005: $5.7b) negatively affected partly by increased funds tied up in freight receivables. The expected result is still very sensitive to the changes in freight rates and volumes, especially in Maersk Line, and in oil prices and exchange rates.