A.P. Moller - Maersk AS - Company Strategy & Performance Analysis

A.P. Moller - Maersk AS - Company Strategy & Performance Analysis

Summary

A.P. Moller-Maersk A/S (Maersk) is a diversified conglomerate that is involved in a range of activities including shipping, transportation, offshore and energy. The group is also involved in the production of oil, gas and other oil related activities including drilling and offshore services. The group operates through eight reportable business segments including Maersk Line, Maersk Oil, APM Terminals, Damco, Maersk Drilling, Maersk Tankers, Svitzer and Maersk Supply Service.

MarketLine Premium’s company strategy reports provide in-depth coverage of the performance and strategies of the world’s leading transport and logistics companies. The report details company operations in key geographies and offers a comprehensive analysis of each firm’s growth strategy and financial performance. The reports benchmark company performance via key indicators, including air freight revenue, sea freight revenue, air freight volume, sea freight volume, operating income, net income and total revenue.

Key Highlights

Modest market demand and lower freight rates, leading to a decline in the Maersk Line segmental revenue
Maersk Line is a global container shipping segment providing ocean transportation services. Its cargo handling services include the pre-treatment of cargo, and packing and stuffing of chilled commodities. The Maersk Line segment revenues declined from US$23,410.0m in 2015 to US$20,416.0m in 2016, posting a decrease of 12.8%. The decline in the revenue was due to 18.7% decline in average freight rates.

Lower freight rates, leading to a decline Damco segmental revenue
Damco provides third party logistics services including freight forwarding, customs brokerage, warehouse and distribution, supply chain management solutions and other value added services. The segment accounted for 7.0% of the company's total revenue in 2016. The revenue of the Damco segment decreased from US$2,737.0m in 2015 to US$2,507.0m in 2016 posting a decline of 8.4%. The decline in the revenue was due to lower freight rates and exchange rate movements.

Lower activity levels and increased competition, leading to decline in the Svitzer segmental revenue
The Svitzer segment provides towage and emergency response services at sea. Its service portfolio includes harbor towage, terminal towage, and salvage and emergency response services. It also provides customized marine services to LNG terminals, ports and oil and gas terminals. The revenue of the segment decreased from US$638.0m in 2015 to US$611.0m in 2016, posting decrease of 4.2%. The decline was due to lower activity within harbour towage and increased competition.

Scope

• Company Snapshot - Details key indicators and rankings of Maersk in terms of revenue, air freight volume, ocean containers and total warehouse space.
• Company SWOT Analysis - Outlines Maersk's strengths, weaknesses, and opportunities and threats facing the company.
• Growth Strategies - Provides an overview of Maersk’s corporate goals and strategic initiatives and evaluates their outcomes.
• Company Performance and Competitive Landscape - Analyses the company’s performance by geographical segment and provides a peer comparison on parameters such as revenue and market share.
• Key Developments - Showcases Maersk's recent corporate events and initiatives.
• ICT Spending Prediction - Details how the company allocates its ICT budget across the core areas of its business, specifically hardware, software, IT services, communications and consulting.

Reasons to buy

• How does Maersk ranks among its peers in terms of revenue and market share?
• What are Maersk's main growth strategies and how successful has the company been at implementing them?
• How has the company performed since 2014?
• How has Maersk performed in comparison to its main competitors?
• What are Maersk’s strengths and weaknesses and what are the opportunities and threats it faces?