Maersk Supply Service plunges to massive lossCompany News // February 9, 2017
Maersk Supply Service reported a loss of US$1.2 billion in 2016, having been badly affected by an impairment of US$1.2 billion due to significant oversupply and reduced long-term demand.
The underlying result was a loss of US$44 million. Revenue decreased to US$386 million because of lower rates and lower utilisation as well as fewer vessel days available due to divestments and lay-ups. The lower revenue was partly offset by cost reductions with total operating costs at US$282 million (compared to US$345 million a year earlier). Maersk Supply Service reduced daily running costs by 11 per cent compared to 2015 on a like-for-like basis in 2016.
The company said market demand "remains low due to the low oil price" and the general market outlook for the industry is expected to remain subdued in the long term In line with market decline, the offshore supply vessel industry continued to see a large number of vessel lay-ups globally - Maersk Supply Service had 11 vessels laid up as of the end of 2016.
In line with owner AP Moller Marsk's new strategy, which will see its energy businesses separated from the parent, which will focus on marine transportation, Maersk Supply Service is being prepared for 'separation.'