Maersk Supply Service "faces challenging market conditions"News // September 2, 2010
Maersk Supply Service says that, even if the Maersk Group has reported a US$2.5 billion profit for the first half of 2010, some business units are still challenged by tough markets, and one of the reasons is the continued oversupply of ships in the market.
"Maersk Supply Service got a segment result of US$117 million in profit, but has a volatile spot market in the North Sea in 2010 to navigate, and new tonnage is a challenge," said the company.
"With continued efforts from staff, both onshore and offshore, I have confidence that our full-year result will be close to or on budget. The activity level is alright, but there is an over-supply of tonnage," said Maersk Supply Service's CEO Carsten Plougmann Andersen.
"The impact of the spot market on the company’s result is positively affected by the fact that a large part of its fleet is employed on long term contracts."
Maersk Supply Service has received 17 of the 18 vessels the company ordered in 2006-2007, and all the vessels are currently employed in West Africa, Brazil and the North Sea.
The CEO attributes part of the success in getting long term contracts with the company’s improved focus on safety and a significantly improved safety record. Maersk Supply Service recently passed six months without Lost Time Injuries (LTIs).
"It is definitely an advantage in getting contracts. There is an increased focus from customers on safety performance and management systems," Mr Plougmann said.