Maersk expects H1 net profit of $2.03 billion

Danish shipping and oil group A.P. Moller-Maersk is expected to post a 22.8 percent rise in half-year 2008 net profit, driven by its oil and gas division, a Reuters poll showed on Friday. The average forecast in the poll of 15 analysts was for a net profit of 10.2 billion crowns ($2.03 billion) compared with 8.3 billion crowns in the corresponding period last year. The company is expected to post a rise of 15.5 percent in half-year sales, to 151.5 billion crowns. Maersk operates the world's largest container shipper, Maersk Line, and controls about 85 percent of Danish oil production in the North Sea together with partners Shell and Chevron.

The focus in the report will be on its main business areas, Maersk Line and Maersk Oil and Gas. While Oil and Gas has benefited from high oil prices, Maersk Line has suffered due to declining demand. Jyske Bank said in a research note.

Maersk Oil and Gas EBIT is seen more than doubling to 25.4 billion crowns while operating earnings for the Container and Shipping arm are seen dropping 62 percent to 445 million crowns.

Handelsbanken Capital Markets said in a research note that container shipping rates on Asia-Europe routes were now falling year-on-year and volumes were weakening.

The outlook for ... (the) second half of 2008 seems weaker than three months ago. On the other hand, the oil price is somewhat higher. In total, APM will need trim its 2008 net profit outlook. the bank said.

The conglomerate also has a retail arm, a tanker business, and an offshore oil services company, as well as a 20 percent stake in Danske Bank.

Maersk's big shipping competitors are Taiwan's Evergreen Marine Corp., Japan's Mitsui O.S.K Lines Ltd., Korea's Hanjin Shipping, Germany's Hapag Lloyd and privately-owned MSC.

Maersk is due to release results on Wednesday, Aug. 27.