The largest shipping group in the world suggests that competition and an over supply will lead to fall in profits this year...
AP Moeller, the world's largest shipping company, has said that profit rose by nine percent last year from the previous year on crude oil shipping and sales. The company said profit in 2002 would fall by almost half.
Net income rose to 5.82 billion kroner ($692 million) from 5.33 billion kroner in 2000. The Moeller family and billionaire Maersk McKinney Moeller control the almost century old company through the publicly traded D/S 1912 and D/S Svendborg. The group also includes oil and gas companies, supermarkets and an airline.
In 2002, it expects profit of 3 billion kroner, the company said in a statement to the Copenhagen Stock Exchange. D/S Svendborg shares fell 4,000 kroner, or by 4.5 percent, to 84,500. D/S 1912 dropped 3,900 kroner, or 5.7 percent, to 64,200.
?There certainly may be a pick up in economic growth, but we don't think that will boost freight rates in 2002,? said Eivind Kolding, AP Moeller's chief financial officer. Price competition and a high supply are depressing prices, he said.