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A P Moller Maersk AS Class B MAERSK B
Q3 2012 Earnings Call Transcript

Transcript Call Date 11/09/2012

Operator: Ladies and gentlemen welcome to the A.P. Moller-Maersk Interim Report Third Quarter 2012. Today, I'm pleased to present the Group CEO, Nils S. Andersen and Group CFO, Mr. Trond Westlie.

For the first part of this call, all participants will be in listen-only mode and afterwards there will be a question-and-answer session. Speakers please begin.

Nils S. Andersen - Group CEO: Okay. Thank you very much and welcome to everybody to this morning call after the third quarter in 2012 and if you just read the forward-looking statements, while I just give a sort of rundown on how we see it. We are pleased to the result seen in total, $933 million we think is reflecting a good and healthy development in most businesses. We have made a write-down on tankers which, of course, means that the underlying result is slightly better than figure.

Maersk Line is back in black. We're very pleased with results of Maersk Line in the third quarter. It's a mix, of course of continued work on efficiency as well as a positive rate development and also a rate development on Asia-Europe where we have seen reasonably good development during the period.

We also continue with a good news on Maersk Drilling on the long-term building plan of that business having signed a three-year contract with ConocoPhillips for the second drillship that will come out early 2014. So that now we have five out of the seven large new rigs that we ordered over the last couple of years mainly on relation covered by contracts.

Great we still have actually a year to go before even the first one is out on the water and I think that indicates that we have timed that investment pretty well. We keep focus on expanding our activities in the terminals business as well. We have during the quarter signed an agreement to take over co-controlling shareholding in global ports in Russia, the largest port operator or terminal operator in that market. In addition to that we are in growth mode in Latin America. We took over the operations of (Cajal or Lima) in Peru last year are expanding and modernizing that facility. We expect to grow into operation in Santos in the early part of 2013. So very good progress here as well.

In terms of the oil, we realized that the production figure is slightly less than we have believed or expected. The main reason for that is actually that we are delayed in the startup of the – on Gryphon, the FPSO in the U.K. that arrived late to station and came into bad weather and then we had some issues with getting right contractors at the right time.

So we're struggling a little bit with that and we hope the startup will be efficient when it come on stream and probably early next year, but having said that overall we are satisfied with the development and feel we're very well on track to achieve our long-term goal.

So with that, I will go to the presentation and I'll take you if you please to Page 3, which is executing on the Group strategy, the (hard facts) and a little bit more the same Maersk Line turned profit-making for the year and Asia-Europe is still the area where we see the most negative development in terms of volume or the negative development in terms of volume, the other trades are still doing well and that gives us some hope for positive development in the global economy sometimes during 2013.

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