Maersk sinks into the red in first half

       The Danish shipping and oil group A.P. Moller-Maersk reported a deeper-than-expected first-half net loss as freight rates, volumes and oil prices fell and said second-half results would be similar.
       The world's biggest container shipping group, a barometer for the health of global trade, swung to a net loss of 3.02 billion Danish crowns ($577 million) from a profit of 11.98 billion a year earlier,missing analysts' average estimate for a loss of 2.91 billion.
       Even so, chief executive Nils Smedegaard Andersen did see some signs of improvement, with shipping volumes and rates starting to rise, though the shipping cycle would lag the global economic improvement.
       "The global economy is moving into a better situation - we are expecting growth going forward and the worst to be behind us," Andersen told analysts in a conference call.
       "Given deliveries (of vessels) in container shipping and tankers, it is likely that the shipping cycle will be somewhat slower in improving, but we are optimistic that the things that we are doing for the long term are right," he said.
       Maersk, a conglomerate whose businesses range from shipping to retail,said in a statement:"The result for the second half of 2009 is expected to be at the same level as the first half-year."
       The global economic crisis had a "severe negative impact" on the group's activities in the first half, said Maersk,whose container shipping fleet consisted of 501 vessels at the end of the first half.
       Freight rates and volumes for the group's container shipping activities were 30% and 7%, respectively, below the levels seen in the same period of 2008,Maersk said.
       Average rates for the tanker activities were considerably lower than in the first half of 2008, and the average price for Brent crude was 52% lower than a year ago.
       "Freight rates continued to fall in the second quarter, from the record-low level in the first quarter, but the curve flattened towards the end of the period," Maersk said.
       "The trend is now expected to reverse,with rate increases, albeit modest, in the third quarter of 2009," the company said.
       "Average oil prices are expected to be higher in the second half than in the first half," it added.
       Maersk operates the world's largest container shipping fleet, Maersk Line,and controls about 85% of Danish oil production in the North Sea, together with partners Royal Dutch Shell Plc and Chevron Corp.
       The group's oil and gas production rose 8% in the first half to 81 million barrels of oil equivalents and 50 new wells began operating during the sixmonth period, Maersk said.
       "Oil and gas output is expected to be a little lower in the second half of 2009 than in the first half, but full-year production is expected to be on a par with 2008," it said.
       Revenues fell to 127.39 billion crowns in the first half year from 148.37 billion in the same period last year, in line with analysts' average forecast of 127.33 billion.