Maersk Product Tankers net profit of 160.7m
An acceleration of the company’s strategy and strong markets in the first half of the year led to Maersk Product Tankers recording a significant increase in profits in 2020.
“During one of the most volatile years in tanker market history, we delivered record-high financial results, and strengthened the company’s market position by optimising our fleet composition and performance”, says Christian M. Ingerslev, CEO of Maersk Product Tankers.
A combination of vessel transactions that ensure an optimal fleet composition, the ability to harness digital, commercial and technical solutions to enhance fleet performance, and rising freight rates, boosted earnings, turning the USD 92.4m net profit in 2019 into an USD 160.7m net profit in 2020.
The company’s revenue decreased to USD 663.6 million (USD 727.7 million), mainly caused by a fall in freight rates during the second half of the year, while it delivered a positive free cash flow of USD 183.2 million.
Maersk Product Tankers continued working in strategic partnership with Maersk Tankers, which manages the fleet commercially and technically. Maersk Tankers’ scale with more than 230 vessels under management and significant investments into digital, commercial and technical shipping solutions enabled greater economic and environmental performance of the assets.
Critical in this was the use of the digital solution Optimise by ZeroNorth. Through the use of complex algorithms, Optimise helps operators optimise bunker spend, which, in turn, cuts CO2 emissions and boost revenue. The solution was used across the fleet and it now has the commitment of 1,500 vessels in tramp shipping to use it.
Maersk Product Tankers finds itself in a solid market position at the start of 2021 thanks to the performance and results achieved in 2020. It will continue to work in partnership with Maersk Tankers and, in tandem, the two companies will take measures to maintain a competitive fleet that matches the inherent cyclical nature of shipping markets, meets the needs of customers and delivers attractive returns to owners.
Source: Maersk Product Tankers