interim report 2013st r e 1t qur a - maersk...oct 12, 2015 · highlights a.p. moller - maersk...

A.P. Møller - Mærsk A/S

Interim Report 1st Quarter 2013

Registration no. 22756214


A.P. Moller - Maersk Group Page

Directors' report

Highlights for the Group during the 1st quarter 2013 3

outlook for 2013 5

Financial highlights 6

The Group’s business units 8

Business overview 9

Business units

Maersk Line 10

Maersk Oil 12

APM Terminals 15

Maersk Drilling 17

Maersk Supply Service 19

Maersk Tankers 20

Damco 21

SvITzeR 22

Dansk Supermarked Group 23

Other businesses 24

Unallocated activities 25

statement of the Board of Directors and Management 26

interiM consoliDateD Financial stateMents

Condensed income statement 28

Condensed statement of comprehensive income 29

Condensed balance sheet 30

Condensed cash flow statement 32

Condensed statement of changes in equity 33

Notes 35

Governing text

The Danish text shall govern for all purposes and prevail in case

of any discrepancy with the english version.

Unless otherwise stated, all figures in parenthesis refer to the

corresponding figures for the prior year.

Forward-looking statements

The Interim report contains forward-looking statements. Such

statements are subject to risks and uncertainties as various factors,

many of which are beyond A.P. Møller - Mærsk A/S’ control, may

cause actual development and results to differ materially from

expectations contained in the interim report.

Change in presentation

The presentation of joint ventures has been changed from 1 January

2013 according to IFRS 11 Joint Arrangements. Comparative figures

have been restated.

The previous segment Maersk FPSOs and Maersk LNG as well as

Discontinued operations have been merged into Other businesses.

Comparative figures have been restated. The changes are

described in note 1.

A.P. Moller - Maersk Group – Interim Report 1st Quarter 2013 3 /46Directors' Report


A.P. Moller - Maersk Group

2013 2012 Change 2013 2012 Change

Revenue

Profit before depreciation, amortisation and impairment losses, etc.

Depreciation, amortisation and impairment losses

Gain on sale of non-current assets, etc., net

Profit before financial items

Profit before tax

Profit for the period

Cash flow from operating activities

Cash flow used for capital expenditure

Return on invested capital after tax (ROIC), annualised

DKK million UsD million 1st quarter 1st quarter

79,324

16,318

6,103

228

10,962

9,544

4,460

13,528

-8,304

7.8%

14,047

2,890

1,080

40

1,941

1,690

790

2,396

-1,470

8.0%

81,311

14,004

6,931

1,845

9,341

8,475

6,669

6,462

-4,750

10.2%

14,327

2,467

1,220

325

1,646

1,493

1,175

1,138

-837

10.2%

-2%

17%

-12%

-88%

17%

13%

-33%

109%

75%

-2%

17%

-11%

-88%

18%

13%

-33%

111%

76%

The Group delivered a profit of USD 790m (USD 1.2bn) and

a return on invested capital (ROIC) of 8.0% (10.2%) for Q1.

Profit for the same period last year was positively affected

by the settlement of an Algerian tax dispute of USD 899m

and divestment gains of USD 325m before tax.

Cash flow from operating activities was USD 2.4bn (USD

1.1bn). Cash flow used for capital expenditure was USD 1.7bn

(USD 2.6bn) and net of sales proceeds USD 1.5bn (USD

837m). The Group’s free cash flow was USD 926m (USD

301m).

Net interest-bearing debt decreased by USD 1.1bn to USD

13.4bn (USD 14.5bn at 31 December 2012). Total equity

was USD 39.6bn (USD 39.3bn at 31 December 2012); posi-

tively affected by the profit for the period of USD 790m

and negative exchange rate adjustments of USD 388m.

Highlights for the Group during the 1st quarter 2013

A.P. Moller - Maersk Group – Interim Report 1st Quarter 2013 4 /46Highlights

Maersk Line made a profit of USD 204m (loss of USD

599m) and a ROIC of 4.0% (negative 12.7%). The significant

turnaround in the financial performance was achieved

through lower costs as revenue of USD 6.3bn was un-

changed. The average freight rates increased 4.7% com-

pared to Q1 2012 partly offset by 4% lower volumes. Total

cost per FFE decreased by 7.1% mainly driven by vessel

improved network efficiencies. Maersk Lines fleet capac-

ity increased 4.2%.

Cash flow from operating activities was USD 762m (nega-

tive by USD 257m) and cash flow used for capital expendi-

ture was USD 479m (USD 1.1bn) leaving a free cash flow

of USD 283m (negative USD 1.4bn).

Maersk Oil made a profit of USD 346m (USD 1.3bn) and

a ROIC of 20.6% (76.5%). The result was negatively af-

fected by lower average oil price of USD 112 per barrel

(USD 119 per barrel) and lower entitlement production

of 239,000 boepd (254,000 boepd) mainly due to reduced

ownership share and production in Denmark which was

partly offset by higher entitlement production in Qatar,

UK and Algeria. The profit for Q1 2012 was positively af-

fected by the settlement of an Algerian tax dispute of

USD 899m and a divestment gain of USD 92m after tax.

Exploration costs amounted to USD 235m (USD 299m)

with the completion of seven (five) exploration/appraisal

wells. Cash flow from operating activities was USD 1.2bn

(USD 1.1bn) and cash flow used for capital expenditure

was USD 412m (USD 553m).

The yearly update of Maersk Oil’s reserves and resources

at the end of 2012 showed entitlement reserves and re-

sources (2P+2C) of 1.36bn barrels of oil equivalent (1.38bn

boe) including proved and probable (2P) reserves of 0.62bn

barrels of oil equivalent (0.59bn boe). A net reserves addi-

tion (2P) of 119 million boe, mainly from Algeria, Denmark,

Qatar, UK and the USA compensated the 94 million boe of

entitlement production in 2012.

APM Terminals made a profit of USD 166m (USD 226m).

Q1 2012 included divestment gain of USD 73m after tax.

ROIC was 12.0% (20.1%).

Positive developments in terminals in high growth mar-

kets were able to offset reduced volumes in North America

and Western Europe, as well as reduced activity in Inland

Services following the divestment of Maersk Equipment

Service Company Inc., USA (MESC) in March 2012. The

number of containers handled was at the same level as

Q1 2012, while the global market increased by 3%.

Cash flow from operating activities was USD 242m (USD

185m) and cash flow used for capital expenditure was USD

164m (USD 24m).

APM Terminals and Turkey-based Petkim signed a stra-

tegic partnership agreement to build and operate the

new Aegean Gateway Terminal (AGT) near Izmir, Turkey.

Further, APM Terminals in consortium with Bolloré Africa

Logistics and Bouygues was named preferred bidder for

a new container terminal in Abidjan, Ivory Coast.

Maersk Drilling made a profit of USD 146m (USD 123m)

and ROIC was 13.0% (13.0%). The increase in profit was

mainly due to general higher operational uptime in Q1 2013.

All of Maersk Drilling’s 16 jack-ups and floaters, the 10 drill-

ing barges in Venezuela and the managed semi-submersi-

ble have been on contract in Q1 2013.

Currently Maersk Drilling has three jack-up rigs and four

drillships under construction. Contracts are already se-

cured with customers for the three jack-ups and the first

two drillships. Maersk Drilling is in discussions with oil

companies for the employment of the two remaining new-

build drillships.

A.P. Moller - Maersk Group – Interim Report 1st Quarter 2013 5 /46Outlook for 2013

Outlook for 2013

The Group still expects a result for 2013 below the 2012

result (USD 4.0bn). The net result is expected to be in

line with 2012 (USD 2.9bn) excluding impairment losses,

divestment gains and gain from the tax settlement in

Algeria.

Cash flow used for capital expenditure is expected to be

somewhat higher than the USD 6.2bn in 2012, while cash

flow from operating activities is expected to develop in

line with the result.

Maersk Line still expects a result above 2012 (USD 461m)

based primarily on further unit cost reductions and the

stronger result in Q1 compared to last year.

Global demand for seaborne containers is expected to in-

crease by 2-4% in 2013, lower on the Asia–Europe trades

but supported by higher growth for imports to emerging

economies.

Maersk Oil still expects a result significantly below the

result for 2012 (USD 2.4bn), which included one-off income

of USD 1.0bn from the Algerian tax dispute and divest-

ment gains. The operational result is expected to be below

the operational result for 2012 (USD 1.5bn, excluding the

Algerian tax dispute and divestment gains). Maersk Oil

expects its entitlement production for 2013 to be 240,000-

250,000 boepd, lower in the first half than the second half

of 2013 at an average oil price of USD 105 per barrel. The

lower entitlement production is predominantly caused

by a natural production decline from mature fields and

reduced ownership share in Denmark, countered by start-

up in El Merk and Gryphon. Exploration expenses are

expected to be above USD 1.0bn.

APM Terminals still expects a result above 2012 (USD

701m) and to grow ahead of the market supported by vol-

umes from new terminals, whilst improving productivity

in existing facilities.

Maersk Drilling still expects a result above the 2012 re-

sult (USD 347m).

The total result from all other activities is still expected

to be above the 2012 result excluding divestment gains

and impairment losses.

The outlook for 2013 is subject to considerable uncertainty,

not least due to developments in the global economy.

The Group’s expected result depends on a number of fac-

tors. Based on the expected earnings level and all other

things being equal, the sensitivities for four key value

drivers are listed in the table below.

Copenhagen, 17 May 2013

Contacts: Group CEO Nils S. Andersen – tel. +45 3363 1912

Group CFO Trond Westlie – tel. +45 3363 3106

The Interim Report for Q2 is expected to be announced on 16 August 2013.

Factors change effect on the Group's profit rest of year

Oil price for Maersk Oil +/- 10 USD/barrel +/- USD 0.2bn

Bunker price +/- 100 USD/tonne -/+ USD 0.1bn

Container freight rate +/- 100 USD/FFe +/- USD 0.7bn

Container freight volume +/- 100,000 FFe +/- USD 0.2bn

A.P. Moller - Maersk Group – Interim Report 1st Quarter 2013 6 /46Financial highlights

Amounts in DKK million

1st quarter Full year

2013 2012 2012

Revenue

Profit before depreciation, amortisation and impairment losses, etc. (eBITDA)



Share of profit/loss in joint ventures

Share of profit/loss in associated companies

Profit before financial items (eBIT)

Financial items, net

Profit before tax

Tax


A.P. Møller - Mærsk A/S’ share

Total assets

Total equity



Investments in non-current assets


Return on equity after tax, annualised

equity ratio

earnings per share (ePS), DKK

Diluted earnings per share, DKK

Cash flow from operating activities per share, DKK

Dividend per share, DKK

Share price (B share), end of period, DKK

Total market capitalisation, end of period

The interim consolidated financial statements on pages 28-45 are presented in DKK. To further illustrate the development of the businesses,

key figures for the A.P. Moller - Maersk Group and segment figures are also presented in USD. For the segments where the primary functional

currency is USD, the comments on these segments refer to the USD figures. The comments on the other segments refer to DKK figures alone.

The interim consolidated financial statements have not been subject to audit or review. The interim consolidated financial statements are

prepared in accordance with IAS 34. The applied accounting policies are changed compared to the consolidated financial statements for 2012.

Changes are described in note 1 to the interim consolidated financial statements, to which reference is made.

Financial highlights

79,324

16,318

6,103

228

189

330

10,962

-1,418

9,544

5,084

4,460

4,010

422,366

231,420

13,528

-8,304

9,223

7.8%

7.9%

54.8%

918

918

3,098

45,400

194,092

81,311

14,004

6,931

1,845

133

290

9,341

-866

8,475

1,806

6,669

6,152

396,112

209,601

6,462

-4,750

14,630

10.2%

12.8%

52.9%

1,409

1,409

1,480

43,080

183,616

342,363

70,986

30,193

3,600

754

1,286

46,433

-4,135

42,298

18,901

23,397

21,673

409,698

222,539

43,490

-35,757

47,582

9.0%

10.9%

54.3%

4,964

4,962

9,961

1,200

42,600

180,388

A.P. Moller - Maersk Group – Interim Report 1st Quarter 2013 7 /46Financial highlights

Amounts in USD million


2013 2012 2012

Revenue

Profit before depreciation, amortisation and impairment losses, etc. (eBITDA)





Profit before financial items (eBIT)


Profit before tax

Tax


A.P. Møller - Mærsk A/S’ share

Total assets

Total equity



Investments in non-current assets


Return on equity after tax, annualised

equity ratio

earnings per share (ePS), USD

Diluted earnings per share, USD

Cash flow from operating activities per share, USD

Share price (B share), end of period, USD

Total market capitalisation, end of period

Average USD/DKK exchange rate

end of period USD/DKK exchange rate

Maersk line

Transported volumes (FFe in million)

Average rate (USD per FFe)

Average bunker price (USD per tonne)

Maersk oil

Average share of oil and gas production (thousand barrels of oil equivalent per day)

Average crude oil price (Brent) (USD per barrel)

apM terminals

Containers handled (measured in million TeU and weighted with ownership share)

Financial highlights

14,047

2,890

1,080

40

33

58

1,941

-251

1,690

900

790

710

72,359

39,646

2,396

-1,470

1,633

8.0%

8.0%

54.8%

163

163

549

7,778

33,251

5.65

5.84

2.1

2,770

626

239

112

8.6

14,327

2,467

1,220

325

23

51

1,646

-153

1,493

318

1,175

1,084

71,109

37,627

1,138

-837

2,578

10.2%

12.7%

52.9%

248

248

261

7,734

32,962

5.68

5.57

2.2

2,646

685

254

119

8.6

59,089

12,252

5,211

621

130

222

8,014

-714

7,300

3,262

4,038

3,740

72,396

39,324

7,506

-6,171

8,212

8.9%

10.7%

54.3%

857

857

1,719

7,528

31,876

5.79

5.66

8.5

2,881

661

257

112

35.4

A.P. Moller - Maersk Group – Interim Report 1st Quarter 2013 8 /46The Group's business units

Global container services

Oil and gas production and exploration activities

Container terminal activities, inland transportation, container depots and repair of containers, etc.

Offshore drilling activities and operation of land rigs through 50% ownership of egyptian Drilling Company

Supply vessel activities with anchor handling and platform supply vessels, etc.

Tanker shipping of crude oil, oil products and gas

Logistic and forwarding activities

Towing and salvage activities, etc.

Supermarkets (føtex and Bilka), department stores (Salling) and discount stores (Netto), etc.


The Group’s business unitsThe Group's invested capital at 31 March 2013 was USD 53bn (USD 52bn) and annualised return on invested capital after tax (ROIC) was 8.0% (10.2%).

Maersk Line 1

Maersk Oil

APM Terminals

Maersk Drilling

Maersk Supply Service

Maersk Tankers

Damco

SVITZER

Dansk Supermarked

Other businesses

ROIC, annualised (USD)

1st quarter

2013 2012

Invested capital31 March

USD million

2013 2012

1 Maersk Line includes the Group's container activities; Maersk Line, Safmarine, MCC and Seago Line.

20% ownership in Dansk Bank A/S (associated company), Maersk Container Industry, Maersk FPSOs and Maersk LNG, Ro/Ro and other

8.0% 53,086

4.0%20,570

20.6%6,515

12.0%5,555

13.0%4,692

10.1%2,164

-1.7%3,421

4.7%518

8.1%1,501

7.5%2,824

5.4%5,900

10.2%

-12.7%

76.5%

20.1%

13.0%

7.8%

-3.1%

8.0%

8.3%

6.9%

10.5%

52,243

19,288

7,107

4,548

3,812

2,162

3,913

381

1,587

2,865

6,887

A.P. Moller - Maersk Group – Interim Report 1st Quarter 2013 9 /46Business overview

1st quarter DKK million USD million

2013 2012 2013 2012

revenue

Maersk Line

Maersk Oil

APM Terminals

Maersk Drilling


Maersk Tankers

Damco

SvITzeR

Dansk Supermarked Group

total reportable segments

Other businesses

Unallocated activities (Maersk Oil Trading)

eliminations

total

profit/loss for the period

Maersk Line

Maersk Oil

APM Terminals

Maersk Drilling


Maersk Tankers

Damco

SvITzeR

Dansk Supermarked Group

total reportable segments

Other businesses

Unallocated activities

eliminations

total

Business overview

6,312

2,538

1,065

433

215

502

728

242

2,296

14,331

622

321

-947

14,327

-599

1,293

226

123

42

-29

7

33

47

1,143

195

-150

-13

1,175

6,313

2,381

1,040

480

227

440

773

186

2,413

14,253

345

115

-666

14,047

204

346

166

146

55

-15

6

30

53

991

81

-288

6

790

35,823

14,406

6,047

2,456

1,218

2,851

4,134

1,374

13,030

81,339

3,530

1,822

-5,380

81,311

-3,402

7,341

1,283

698

238

-165

40

185

267

6,485

1,105

-852

-69

6,669

35,651

13,447

5,874

2,711

1,284

2,486

4,366

1,051

13,628

80,498

1,946

651

-3,771

79,324

1,150

1,953

939

826

312

-82

34

172

301

5,605

459

-1,625

21

4,460

A.P. Moller - Maersk Group – Interim Report 1st Quarter 2013 10 /46Business units

• Profit of USD 204m (loss of USD 599m)• ROIC was 4.0% (-12.7%)• Unit cost decreased by 7.1% to 2,871 USD/FFe (3,092 USD/FFe)• Average rate increased by 4.7% to 2,770 USD/FFe (2,646 USD/FFe)• Active capacity adjustments through idling, super slow steaming and blanked sailings• volumes decreased by 4.0% to 2.1m FFe (2.2m FFe)• Cash flow from operating activities positive by USD 762m (negative by USD 257m)• Cash flow used for capital expenditure USD 479m (USD 1.1bn).

MarKet DevelopMent

Q1 2013 indications show modest improvements in the

global demand for container transport, reflecting the weak

economic situation especially in developed countries.

The capacity of the global container fleet reached 16.6m

TEU at the end of Q1 2013, an increase of 5% compared to

Q1 2012 and a 1% increase compared to end Q4 2012. The

increase in tonnage reflected new deliveries of 352,000

TEU (56 vessels) but also a strong increase in demolition

of 127,000 TEU. New orders amounted to 228,000 TEU (29

vessels), leading to a further decline of the order book to

20% of the fleet.

Demand is expected to stay subdued in 2013 while capac-

ity will grow significantly. Accordingly, conditions for the

container industry remain challenging and managing

supply will be even more important this year. Idled capac-

ity remained stable at 5.0% or 828,000 TEU of the global

container fleet by end Q1 2013 versus 5.0% or 809,000 TEU

end 2012.

Financial perForMance

Maersk Line delivered a result of USD 204m, a USD 803m

improvement compared to Q1 2012, despite subdued

global market demand. The improvement was driven by

lower unit costs through the continuous focus on opera-

tional cost savings mainly from vessel network efficien-

cies. The result improved the return on invested capital

(ROIC), from -12.7% in Q1 2012 to 4.0% in Q1 2013.

Revenue of USD 6.3bn was unchanged from Q1 2012,

positively affected by average freight rates increas-

ing by 4.7% to 2,770 USD/FFE and negatively affected

by volume decrease of 4.0% to 2.1m FFE. Freight rates

decreased 2.7% compared to Q4 2012. Maersk Line’s

overall estimated market share in Q1 was in line with the

market share on average in 2012.

Total cost per FFE decreased by 7.1% to 2,871 USD/FFE

mainly driven by vessel network efficiencies. Maersk

Line continued to utilise super slow steaming to reduce

emissions and save bunker cost. The 26% decrease in

bunker cost to USD 1.4bn compared to Q1 2012 was due

to 19% lower bunker consumption and 9% decrease in

average bunker price.

Highlights 2013 2012

Revenue 6,313 6,312

profit/loss before depreciation, amortisation

and impairment losses, etc. (eBitDa) 631 -162

Depreciation, amortisation and impairment losses 442 410

Gain on sale of non-current assets, etc., net 6 1

profit/loss before financial items (eBit) 195 -571

Tax +9 28

net operating profit/loss after tax (nopat) 204 -599

Cash flow from operating activities 762 -257

Cash flow used for capital expenditure -479 -1,130

Invested capital 20,570 19,288

ROIC, annualised 4.0% -12.7%

Transported volumes (FFe in million) 2.1 2.2

Average rate (USD per FFe) 2,770 2,646

Average bunker price (USD per tonne) 626 685

Maersk Line UsD million 1st quarter


Maersk Line took delivery of two WAFMAX and three

SAMMAX container vessels in Q1 2013 totalling 35,000

TEU finalising the delivery of the 22 WAFMAX and 16

SAMMAX vessels ordered in 2008. No vessels were sold

during Q1 2013. By the end of Q1 2013 the fleet consisted of

275 owned vessels (1.5m TEU) and 302 chartered vessels

(1.1m TEU) with a total capacity of 2.6m TEU. Maersk Line

ownes five and chartered seven multipurpose vessels.

Maersk Line's fleet capacity decreased by 0.9% since

end 2012 and dropped more than 3.2% in numbers of

vessels. Idle capacity end Q1 2013 was 163,000 TEU (28

vessels) versus 107,000 TEU (21 vessels) end 2012 which

corresponds to around 20% of total idle capacity in the

market.

20 vessels totalling 360,000 TEU are on order for deliv-

ery during 2013-2015. The first five of these 20 Triple-E

container vessels suited for the Asia-Europe trade will

be delivered during 2013. No new building orders were

placed during Q1 2013.

Overall, the result represents the fourth consecutive

profitable quarter in a challenging business environ-

ment. However, the profitability level remains unsatis-

factory.

saFety perForMance

The lost time incidents frequency (LTIF) for the last four

quarters was 0.77 per million working hours (0.55 per

million working hours).

Maersk lineMaersk conakryWalvis Bay, namibia

The introduction of the WAFMAX vessels has significantly increased the direct capacity between the Far East and West Africa carrying as much as 4,500 TEU on a weekly rotation.


• Profit of USD 346m (USD 1.3bn), where first quarter 2012 was positively impacted by one-off tax income of USD 899m in Algeria and a divestment gain of USD 92m after tax

• ROIC of 20.6% (76.5%)• Cash flow from operating activities was USD 1.2bn (USD 1.1bn)• entitlement production declined by 6% to 239,000 boepd (254,000 boepd)• Operated production decreased by 6% to 573,000 boepd (611,000 boepd)• Average oil price decreased by 5% at USD 112 per barrel (USD 119 per barrel)• exploration costs were USD 235m (USD 299m).

Maersk Oil’s profit for the first quarter was USD 346m (USD

1.3bn) negatively affected by lower production share and

lower oil prices. The El Merk field in Algeria started produc-

tion and the Balloch field development plan in the UK as

well as the development of Tyra Southeast in Denmark

were approved by the authorities. Successful appraisal

wells have been completed on the major Johan Sverdrup

discovery in Norway. New licences were added to the port-

folio in Norway and Maersk Oil was successful in bidding

for new leases in the US Gulf of Mexico with award subject

to authority approval.

reserves anD resoUrces

The yearly update of Maersk Oil’s reserves and resources

as per end of 2012 showed entitlement reserves and re-

sources (2P+2C) of 1.36bn barrels of oil equivalent (1.38bn

boe) including proved and probable (2P) reserves of 0.62bn

barrels of oil equivalent (0.59bn boe). A net reserves addi-

tion (2P) of 119 million boe, mainly from Algeria, Denmark,

Qatar, UK and the USA compensated the 94 million boe

of entitlement production in 2012. The reserves and re-

sources are estimated according to international standards

(Society of Petroleum Engineers’ Petroleum Resources

Management System) and the reserves are audited by an

independent third party.

proDUction

Maersk Oil’s average daily share of oil and gas production

during Q1 2013 was 239,000 boepd, 6% lower than in the

same period 2012 (254,000 boepd). The lower production

level was as expected and in line with the previously an-

nounced yearly production estimate of 240,000-250,000

boepd, lowest in first half of the year.


Revenue 2,381 2,538

profit before depreciation, amortisation

and impairment losses, etc. (eBitDa) 1,560 1,853


Gain on sale of non-current assets, etc., net - 110

Share of profit/loss in associated companies -15 -5

profit before financial items (eBit) 1,204 1,463

Tax 858 170

net operating profit after tax (nopat) 346 1,293

Cash flow from operating activities 1,159 1,135

Cash flow used for capital expenditure -412 -553


ROIC, annualised 20.6% 76.5%

exploration costs 235 299

Average share of oil and gas production

(thousand barrels of oil equivalent per day) 239 254

Average crude oil price (Brent) (USD per barrel) 112 119

Maersk Oil UsD million 1st quarter

end 2012 end 2011

Proved reserves (1P) 410 443

Probable reserves (2P¡)1 209 151

Proved and probable reserves (2P) 619 594

Contingent resources (2C) 740 790

reserves and resources (2p+2c) 1,359 1,384

Reserves and resources in million boe – barrels of oil equivalent 1 Incremental volume

Maersk Oil's reserves and resources


In Qatar, the production share of 101,000 boepd was

slightly higher than in the same period 2012 (96,000) due

to lower oil price while the gross production remained

unchanged at a level of 300,000 boepd.

In Denmark, the production share was 76,000 boepd

(107,000 boepd), 29% lower, primarily due to the entry

of Nordsøfonden (the Danish state-owned North Sea

Fund) as partner with 20% interest in the Danish Under-

ground Consortium mid-2012. The production was also

negatively affected by the natural decline of the largely

mature Danish fields.

The Danish Government completed the North Sea Service

Check, initiated in January 2012 when an official commit-

tee was asked to clarify the conditions for the oil and gas

activities in the Danish part of the North Sea. The Service

Check concluded that the 2003 North Sea Agreement be-

tween the Group and the Danish state is balanced, durable

and providing a robust government take.

The production share in the UK was with 23,000 boepd

(18,000 boepd) somewhat higher than in the same period

2012, mainly due to the increased ownership share in the

Dumbarton fields as well as higher uptime on the Janice

field even though it has been facing production challenges

during first quarter 2013. The reinstatement of the Gryphon

FPSO is delayed until Q2 2013.

In Algeria, the share of production was positively affected

by improved terms following the tax settlement in 2012,

somewhat offset by the natural decline of the fields which

resulted in a production share of 29,000 boepd (27,000

boepd). The El Merk field went on stream in March and

production will be ramped up throughout 2013 reaching an

expected entitlement share of production of 15,000 boepd.

Entitlement production in Kazakhstan and Brazil was

4,000 boepd and 5,000 boepd respectively, both slightly

higher than in the same period 2012.

DevelopMent

Maersk Oil has a diverse project portfolio to achieve the

production target of 400,000 boepd by 2020. Five major

projects are approved by the authorities and execution

is progressing towards first production.

In Algeria, the El Merk field went into production in March.

Initial production will be limited but production is expected

to be ramped up to full capacity by the end of the year.

In Angola, work continues on firming up the field devel-

opment scheme for the Chissonga discovery in Block 16.

A field development plan is expected to be submitted to the

authorities in the second half of 2013. The development will

likely include a stand-alone FPSO. Depending on the de-

velopment plan, first oil is expected in 2017-18.

In Brazil, a successful production test was completed at

the Itaipu offshore discovery, however further appraisal

is needed to evaluate the discovery for development.

In Denmark, the expansion of the Tyra Southeast devel-

opment was approved by the authorities in April. The

investment of USD 800m (USD 250m Maersk Oil share)

is the largest investment by the DUC partners since 2007

and consists of a new unmanned platform that will go into

production in 2015. Peak production around 2017 from the

platform will add 6,000 boepd to the production share.

In Kazakhstan, drilling and ramping up of production

from the Dunga field continues. 19 out of 197 wells have

been completed.

In Norway, the 7th and 8th appraisal wells on the Johan

Sverdrup discovery have been completed. Both were suc-

cessful and encountered a thick oil column and confirmed

the good reservoir quality and flow properties. Drilling

of the 9th appraisal well was ongoing by the end of first

quarter.

In Qatar, work on the new field development plan ap-

proved by the authorities in 2012 is ongoing. The first of

51 planned wells is expected to be drilled in the second

half of 2013.

In the UK, the Golden Eagle development project is pro-

gressing towards production start in 2014. The UK au-

thorities have approved the field development plan for

the Balloch oil field. The field is operated and 100% owned

by Maersk Oil and will be tied back to the GPIII FPSO.

Peak production from the first well is expected around

8,000 barrels of oil per day with first oil planned for sec-

ond quarter 2013. A second well will be drilled at the end

of 2013.

0

20

40

60

80

100

120

Maersk Oil’s share of production Q1 2012Q1 2013

KazakhstanBrazilAlgeriaUKDenmarkQatar


In the USA, the Jack deepwater development project in

the US Gulf of Mexico is progressing as planned towards

production start in 2014. The first development well has

been successfully completed and preparations for the

Jack Stage II development which includes another four

development wells are ongoing. The drilling of the Buck-

skin-3 appraisal well commenced late March 2013.

exploration

During the first quarter, Maersk Oil completed seven ex-

ploration/appraisal wells compared to five in the same

period 2012. None are assessed to be commercially viable.

In Angola, drilling in Block 16 of the Cubal exploration

well started in late March and acquisition of 3,700 km2

pre-salt 3D seismic was ongoing at the end of Q1.

In Brazil, drilling of the four wells, Viedma, Tulum, Cancun

and Cozumel wells in Block BM-C-37 have been completed

and results are being analysed. Drilling of the Benedito

well in Block BM-C-34 commenced in March.

In Norway, the Maersk Oil operated Albert well has been

completed as a dry hole.

Maersk Oil acquired two licenses in the APA 2012 licensing

round; PL660, with a 25% share, and PL671, with a 60%

share and operatorship, both in the North Sea.

In the UK, drilling of the non-operated HPHT Thunderer

exploration well commenced in January and operations

were ongoing by the end of first quarter.

In the USA, Maersk Oil was successful in bidding for 14

blocks in the Central Gulf Lease Sale with award subject

to authority approval. Drilling of the Oceanographer pros-

pect is planned for mid-2013.


Profit in the first quarter was USD 346m (USD 1,293m)

and ROIC was 20.6% (76.5%). The result was negatively

affected by the lower entitlement production while the

comparison figure for 2012 was positively affected by

one-off income of USD 1.0bn from the settlement of the

Algerian tax dispute and the gain from a partial divest-

ment of interests in Brazil.

Cash flow from operating activities was USD 1.2bn (USD

1.1bn) and cash flow used for capital expenditure was USD

412m (USD 553m). Exploration costs of USD 235m (USD

299m) incurred by the completion of seven (five) explora-

tion/appraisal wells.

saFety perForMance

Maersk Oil has safety as a top priority and works towards

becoming incident free. With only one lost time injury in

Q1, the last four quarters Lost Time Incident Frequency

(LTIF) was 0.56 per million working hours (0.81 per mil-

lion working hours).

Maersk oilangola

The deepwater drill ship, West Polaris, is drilling an exploration well in Angola’s Block 16, the same Block where Maersk Oil made the Chissonga discovery, which was declared commercial in 2011.


• Profit of USD 166m (USD 226m). Gains of USD 73m after tax were included in 2012• ROIC was 12.0% (20.1%)• Cash flow from operating activities was USD 242m (USD 185m)• Number of containers handled was 8.6m TeU (8.6m TeU)• A strategic partnership agreement was signed with Turkey-based Petkim to create and operate

the new Aegean Gateway Terminal (AGT) near Izmir, Turkey• APM Terminals in consortium with Bolloré Africa Logistics and Bouygues was named preferred

bidder for a new container terminal in Abidjan, Ivory Coast.

The result for the period was affected by reduced volumes

in North America and Western Europe, as well as reduced

activity level in Inland Services, following the divestment

of Maersk Equipment Service Company Inc., USA (MESC)

in March 2012. Positive developments in terminals in high

growth markets compensated for this.

MarKet DevelopMent

The global container terminal market measured in TEU

increased by 3% during the first quarter of 2013.

The number of containers handled by APM Terminals

(measured in crane lifts and weighted with APM Terminals’

ownership interest) was unchanged compared to Q1 2012.

Volumes from customers outside the APMM Group grew

by 9% and reached 50% of the total (46% in Q1 2012).

portFolio

APM Terminals announced the following developments

with portfolio implications in Q1:

• APM Terminals and Turkey-based Petkim entered into

an agreement to create and operate Aegean Gateway

Terminal (AGT). AGT will be one of Turkey’s largest con-

tainer and general cargo terminals and will be entirely

operated by APM Terminals under a concession agree-

ment with operations expected to start in summer 2015.

The initial investment for the container terminal is ap-

proximately USD 400m. APM Terminals will have the

right to operate the port for a period of 28 years which

may be further extended. The terminal will be capable

of handling vessels over 10,000 TEU capacity.

• China Shipping Terminals signed a Memorandum of

Understanding with APM Terminals, stating the inten-

tion of purchasing a 24% share of APM Terminals Zee-

brugge. The transaction is scheduled to be finalized by

the end of June 2013.

• APM Terminals in consortium with Bolloré Africa Logis-

tics and Bouygues was named preferred bidder to man-

age a second container terminal in Abidjan, Ivory Coast.

Once constructed, the terminal will be able to handle

8,000 TEU vessels and thereby expand the port’s role

as a regional transhipment hub.

APM Terminals’ proposal to operate all Port of Virginia

facilities in Hampton Roads, USA under a long-term


Revenue 1,040 1,065


and impairment losses, etc. (eBitDa) 201 222



Share of profit/loss in joint ventures 24 20

Share of profit/loss in associated companies 17 14

profit before financial items (eBit) 178 293

Tax 12 67

net operating profit after tax (nopat) 166 226

Cash flow from operating activities 242 185




Containers handled (measured in million TeU

and weighted with ownership share) 8.6 8.6

APM Terminals UsD million 1st quarter


concession agreement with the Virginia Port Authority

(VPA) was rejected by the Virginia Port Authority Board of

Commissioners, who decided to discontinue the process.

Construction of the jointly owned Brasil Terminal Portuario

in Santos, Brazil has been completed and operations are

expected to commence during Q2 2013. Volumes will ramp

up during the second half of the year, as dredging of the

port gets finalised.


APM Terminals delivered a profit of USD 166m and a re-

turn on invested capital of 12.0%. This compares to a profit

of USD 226m in Q1 2012, where the result was affected by

gains of USD 73m after tax primarily on the sale of Maersk

Equipment Service Company Inc., USA (MESC) (USD 48m)

and half of the stake in Xiamen, China (USD 21m).

Operational cash flow was USD 242m (USD 185m).

saFety perForMance

The LTIF for the last four quarters was 2.22 per million

working hours (3.46 per million working hours). APM

Terminals has continued focus on eliminating accidents

and advancing the safety management culture.

apM terminalsizmirturkey

Opening in 2015, the Aegean Gateway Terminal will serve Turkey’s growth ambitions with a modern container terminal as part of the overall port complex that also features petrochemical facilities.


• Profit of USD 146m (USD 123m)• ROIC was 13.0 % (13.0%)• Cash flow from operating activities was USD 178m (USD 118m)• Forward contract coverage of 98% for the remaining part of 2013 and 79% for 2014• Operational uptime averaged 96% (93%).

MarKet DevelopMent

During Q1 2013 the oil price remained above USD 100 a

barrel providing continued support for the oil companies'

exploration and development activities.

The Norwegian jack-up market was strong at full uti-

lisation of capacity. Demand continues to improve with

additional tenders for long duration drilling programmes

being issued by the oil companies. With supply of jack-

ups being limited the increase in demand will most likely

lead to additional jack-up newbuildings to be ordered.

In the international premium jack-up market, rates

and contract duration continues to improve. Oil compa-

nies continue to prefer newer rigs due to the safety and

efficiency gains offered.

In the ultra deepwater market day rates were in the USD

550,000-600,000 range with some variations across re-

gions and countries reflecting differences in operating cost

levels and taxes.

contracts siGneD in Q1 2013

During the quarter, the option for Maersk Completer was

exercised. The duration of the option is one year keeping

the rig on contract until November 2014.

At the end of Q1 2013, Maersk Drilling´s forward contract

coverage for the remaining part of 2013 was 98%, 79% for

2014, 51% for 2015 and 41% for 2016.

The total revenue backlog for Maersk Drilling at end of Q1

amounts to USD 6.5bn (USD 5.4bn by end Q1 2012).

Newbuilding programme

Maersk Drilling currently has seven rigs under construc-

tion. The orderbook includes three ultra harsh jack-up

rigs. The first two rigs will be delivered in 2014, while the

third rig will be delivered in 2015. Additionally, the order-

book contains four ultra deepwater drillships. The drill-

ships will be delivered in 2013 and 2014. The newbuilding

programme representing an investment of USD 4.5bn is

progressing according to plan.

Operational status

In the first quarter of 2013, all of Maersk Drilling’s 16 jack-

ups and floaters, the 10 drilling barges in Venezuela and

the managed semi-submersible have been on contract.


Revenue 480 433




Share of profit/loss in joint ventures 1 -1


Tax 34 30






Maersk Drilling UsD million 1st quarter

segment 2013 2014

Ultra-harsh environment jack-up rigs (Norway) 100% 86%

Premium jack-up rigs 95% 64%

Ultra deepwater and midwater rigs 100% 90%

Maersk Drilling’s contract coverage per segment


Maersk Drilling’s operational uptime in the first quarter

of 2013 averaged 96% (93% in first quarter 2012). For the

floating rigs the operational uptime averaged 94% (97%),

while the operational uptime for the jack-up rigs aver-

aged 97% (93%).


The increase in profit of USD 23m compared to Q1 2012 is

mainly due to higher operational uptime in 2013.

saFety perForMance

The lost time incidents frequency (LTIF) for the last four

quarters was 1.44 per million working hours (0.24 per

million working hours).

Maersk DrillingBusansouth Korea

Maersk Drilling is a leading contractor in the ultra deepwater segment currently expanding the fleet with four drillships which can operate at depths that exceed 3,500 m.


• Profit of USD 55m (USD 42m)• ROIC of 10.1% (USD 7.8%)• Cash flow from operating activities of USD 109m (USD 87m).

In the North Sea spot market for anchor handling tug sup-

ply vessels (AHTS) and platform supply vessels (PSV) the

day rates increased during the beginning of Q1 2013 and

reached higher levels compared to Q1 2012. Vessel avail-

ability still keeps day rates and utilisation under some

pressure. A number of contracts for PSVs were concluded.

Three vessels were divested during the period as part of

the ongoing fleet renewal initiative bringing the fleet to a

total of 62 vessels.

Within the emergency response and rescue segment,

ESVAGT nearly achieved full utilisation during Q1. One

new ESVAGT vessel out of a series of four (the first three

were delivered in 2012) was delivered during the period

bringing the fleet to a total of 36 vessels.

The profit increased by USD 13m compared to Q1 2012

mainly due to a higher utilisation and delivery of new

vessels in the ERRV segment as well as the realisation

of sales gain of the divestment of three vessels.

Contract coverage for the remainder of 2013 is 67% and

37% for 2014 excluding options.

The first quarter of 2013 has been LTI free for Maersk

Supply Service. The LTIF for the last four quarters was

0.59 per million working hours (0.83 per million working

hours).


Revenue 227 215




Gain/loss on sale of non-current assets, etc., net 7 -1


Tax 7 2






Maersk Supply Service UsD million 1st quarter


• Loss of USD 15m (loss of USD 29m)• ROIC was negative by 1.7% (negative 3.1%)• Two product vessels were sold and generated a gain of sales of 2m• Three Handygas vessels were delivered to new owner• Three time chartered vessels were redelivered to the owners during Q1.

The fundamental market for crude shipping was very

weak in the first quarter mainly due to declining Chinese

imports and seasonal refinery maintenance in Asia.

The product segments performed relatively well in the

first quarter of 2013.

For the Gas segment, demand for the Very Large Gas

Carriers (VLGC) vessels has been significantly affected

by the embargo on Iran and key importers in Asia have

replaced imports by stock drawings on the back of a

relatively high Liquefied Petroleum Gas (LPG) price.

The result for Q1 2013 was a loss of USD 15m (loss of USD

29m). The improvement was mainly driven by improved

average time charter equivalent earnings (TCE), in all

but the Crude and LR2 segments and lower vessel oper-

ating costs.

Maersk Tankers sold two product vessels during the first

quarter of 2013. Three of the 11 Handygas vessels, where

a sales agreement was made in 2012, were delivered to

the new owner in Q1. Three time chartered vessels were

redelivered to the owner in Q1 2013.

Maersk Tankers LTIF for the last four quarters was 0.74

per million working hours (0.99 per million working

hours).


Revenue 440 502




Gain on sale of non-current assets, etc., net 2 -

Share of profit/loss in joint ventures -2 -1

profit before financial items (eBit) -13 -29

Tax 2 -

net operating profit after tax (nopat) -15 -29


Cash flow used for capital expenditure 159 -271


ROIC, annualised -1.7% -3.1%

Maersk Tankers UsD million 1st quarter


• Profit of USD 6m (USD 7m)• ROIC was 4.7% (8.0%)• Revenue was up by 6% to USD 773m (USD 728m)• Cash flow from operating activities was USD 2m (negative by USD 44m).

In Q1 2013 Ocean freight volumes continued to show low

growth rates similar to late 2012 with only 1% growth

over prior year period. Airfreight volumes still showed

rapid growth, 15% over 2012 which was well ahead of

market enhanced by the acquisition of Pacific Network

Global Logistics (PacNet). Supply Chain Management

volume growth accelerated further in Q1 2013 with 10%

growth over Q1 2012 mainly driven by a strong pre-

Chinese New Year uptake in volumes.

The integration of PacNet, acquired October 2012, pro-

gresses according to plan. The relocation of Damco’s

headquarters to The Hague, Netherlands was completed

as planned in Q1.

The improved cash flow from operating activities were

driven by improvements in working capital employed.

Damco’s LTIF for the last four quarters was 0.51 per mil-

lion working hours (0.65 per million working hours).


Revenue 773 728




Gain on sale of non-current assets, etc., net 2 -



Tax 3 6



Cash flow used for capital expenditure -6 1

Invested capital 518 381


Damco UsD million 1st quarter


• Profit of USD 30m (USD 33m)• eBITDA margin of 27.2% (23.1%)• ROIC was 8.1% (8.3%).

Within SVITZER’s main business, harbour towage, ac-

tivity was up by 7% compared to same period last year

after a robust recovery in March.

Tariff increases were announced and implemented by

1 April in most harbour towage ports in Australia and

Europe.

Terminal towage activities developed as planned with

a few smaller new contracts won in Oman, Mexico and

Venezuela.

Salvage activity was weak in Q1, but the project pipeline

is improving.

Revenue at USD 186m (USD 242m) was below same pe-

riod last year due to last year’s salvage revenue. EBITDA

and NOPAT decreased by 9% and 7% respectively, mainly

due to the decline in earnings from salvage, that were

only partly offset by harbour towage.

Operating cash flow decreased relative to same period last

year due to last year’s collection of salvage receivables.

Investment cash flow was down 56% as the last part of

SVITZER’s major fleet renewal program was completed

mid-2012. Current vessels on order are limited to vessels

under construction for the Australian Gorgon project.

SVITZER’s LTIF for the last four quarters was 1.3 per mil-

lion working hours (0.9 per million working hours).


Revenue 186 242







Tax 7 6






SvITzeR UsD million 1st quarter


• Revenue of DKK 13.6bn (DKK 13.0bn)• eBIT was DKK 400m (DKK 367m)• Profit was DKK 301m (DKK 267m)• ROIC was 7.4% (6.9%)• Cash flow from operating activities was DKK 426m (DKK 87m)• Six new stores were opened and three closed.

The Danish market for fast moving consumer goods grew

1.5% in Q1 2013 and Dansk Supermarked grew 5.2%.

The market development in Denmark was characterised

by a continued shift of volume towards the discount

segment as discounters benefited from more Sunday

openings.

Revenue increased by DKK 598m versus Q1 2012 and DKK

633m adjusted for the closure of Tøj & Sko. The growth

was seen across all formats and countries.

Profit increased by DKK 34m compared to Q1 2012 as a

result of the initiatives to reduce cost and create funding

for other activities, the turnaround of Netto Sweden and

the non performing stores closed during 2012.

Dansk Supermarked increased its market share in

Denmark in Q1 to 35.6% (34.4%) and the market share also

increased in Poland and Sweden and remained stable in

Germany.

The lost time injury frequency (LTIF) for the last four quar-

ters was 12.2 per million exposure hours (13.3 per million

exposure hours).


Revenue 13,628 13,030




Gain on sale of non-current assets, etc., net - 20


Tax 99 100






Dansk Supermarked DKK million 1st quarter

A.P. Moller - Maersk Group – Interim Report 1st Quarter 2013 24 /46Other businesses

Other businesses

The profit for Maersk FPSOs was USD 6m in Q1, a de-

crease of USD 104m compared to Q1 2012. The lower re-

sult is a consequence of the divestment of the LNG fleet

and the FPSO Maersk Peregrino in 2012 as well as the

transfer of the Volve production module to Maersk

Drilling as of 1 January 2013.

The profit for Maersk Container Industry was USD 2m

(USD 26m) and ROIC was 4.4% (42.8%). The traditionally

busy first quarter ended at a low level due to container

liners' postponement of investment in new containers.

The Group owns 20% of the shares in Danske Bank. The

bank’s profit was DKK 1.5bn (DKK 778m), of which 20%,

corresponding to DKK 295m (DKK 157m), is included in

the Group’s profit.

The profit for Ro/Ro and related activities was USD 13m

(USD 22m) and ROIC was 6.9% (12.6%).

Maersk lineelly MaerskMorocco

Elly Maersk calling at Tangier in Morocco. The vessel was built by Odense Steel Shipyard in Denmark and has a capacity of 15,000 TEU. The ship is 397m in length and 56 m across the beam.

A.P. Moller - Maersk Group – Interim Report 1st Quarter 2013 25 /46Unallocated activities


Unallocated activities comprise revenue and costs, etc.

that are not attributed to reportable segments as well as

all financial items. Furthermore, the purchase of bunker

and lubricating oil on behalf of companies in the Group,

as well as oil hedging activities that are not allocated to

segments, are included on a net basis.

The financial items were negative by USD 251m (nega-

tive by USD 153m); a decline by USD 98m, primarily due

to currency adjustments. Interest cost remained at the

same level as in 2012.


Revenue 115 321

Costs including depreciation and amortisation, etc. 178 334

value adjustment of oil price hedges -3 -9

loss before financial items (eBit) -66 -22

Financial items, net -251 -153

loss before tax -317 -175

Tax +29 +25

loss for the period -288 -150

Cash flow from operating activities -238 -299

Unallocated activities UsD million 1st quarter

Maersk lineMalaysia

Maersk Line is a market leader in refrigerated containers, enabling exports of bananas from e.g. Malaysia. In 2012, Maersk Line delivered more than 8 billion bananas around the world.

A.P. Moller - Maersk Group – Interim Report 1st Quarter 2013 26 /46A.P. Moller - Maersk Group

The Board of Directors and the Management have today

discussed and approved the interim report of A.P. Møller -

Mærsk A/S for the period 1 January to 31 March 2013.

The interim financial statements for the A.P. Moller - Maersk

Group has been prepared in accordance with IAS 34

Interim Financial Reporting as adopted by the EU and

Danish disclosure requirements for listed companies. In

our opinion the interim financial statements (page 28-45)

give a true and fair view of the Group’s total assets, liabili-

ties and financial position at 31 March 2013 and of the re-

sult of the Group’s operations and cash flows for the period

1 January to 31 March 2013. Furthermore, in our opinion

the Directors’ report (pages 3-25) includes a fair review of

the development in the Group’s operations and financial

conditions, the result for the period, cash flows and finan-

cial position as well as a description of the most significant

risks and uncertainty factors that the Group faces.

Copenhagen, 17 May 2013

A.P. Møller - Mærsk A/SStatement of the Board of Directors and Management

Management:

Board of Directors:

Sir John Bond Arne Karlsson Jan Leschly

Trond Westlie

Erik Rasmussen Robert Routs Jan Tøpholm

Leise Mærsk Mc-Kinney Møller Lars Pallesen John Axel Poulsen

Michael Pram Rasmussen

Chairman

Ane Mærsk Mc-Kinney Uggla

Vice chairman

Niels Jacobsen

Vice chairman

Nils S. Andersen

Group CEO

Claus V. HemmingsenKim Fejfer

Jakob Thomasen

Søren Skou

Interim consolidated financial statements 1st Quarter 2013


Maersk oil el Merk, algeria

A.P. Moller - Maersk Group A.P. Moller - Maersk Group – Interim Report 1st Quarter 2013 28 /46

condensed income statement



Note 2013 2012 2012

2 Revenue

profit before depreciation, amortisation and impairment losses, etc.





profit before financial items


profit before tax

Tax

2 profit for the period

Of which:

Non-controlling interests

a.p. Møller - Mærsk a/s’ share

earnings per share, DKK

Diluted earnings per share, DKK

79,324

16,318

6,103

228

189

330

10,962

-1,418

9,544

5,084

4,460

450

4,010

918

918

81,311

14,004

6,931

1,845

133

290

9,341

-866

8,475

1,806

6,669

517

6,152

1,409

1,409

342,363

70,986

30,193

3,600

754

1,286

46,433

-4,135

42,298

18,901

23,397

1,724

21,673

4,964

4,962


condensed statement of comprehensive income



2013 2012 2012

profit for the period

items that have been or may be reclassified subsequently to the income statement

Translation from functional currency to presentation currency

Other equity investments

Cash flow hedges

Tax on other comprehensive income

Share of other comprehensive income of joint ventures, net of tax

Share of other comprehensive income of associated companies, net of tax

items that will not be reclassified to the income statement

Actuarial gains/losses on defined benefit plans, etc.

Tax on actuarial gains/losses on defined benefit plans, etc.

other comprehensive income, net of tax

total comprehensive income for the period

Of which:


a.p. Møller - Mærsk a/s’ share

4,460

4,825

-20

-309

-1

10

-29

4,476

-

-

-

4,476

8,936

490

8,446

6,669

-4,326

-4

532

8

25

72

-3,693

-

-

-

-3,693

2,976

484

2,492

23,397

-2,627

24

1,075

-90

6

133

-1,479

-253

-

-253

-1,732

21,665

1,688

19,977


condensed balance sheet, total assets


31 March 31 December 1 January

Note 2013 2012 2012 2012

Intangible assets

Property, plant and equipment

Financial non-current assets

Deferred tax

total non-current assets

Inventories

Receivables, etc.

Securities

Cash and bank balances

3 Assets held for sale

total current assets

2 total assets

27,851

242,877

45,476

4,153

320,357

12,887

46,754

2,133

12,140

1,841

75,755

396,112

28,904

257,580

54,005

2,951

343,440

12,602

47,238

2,267

14,380

2,439

78,926

422,366

27,953

248,120

53,707

3,292

333,072

12,869

46,882

2,160

11,670

3,045

76,626

409,698

26,431

244,372

44,956

4,485

320,244

12,719

39,489

2,151

12,013

9,737

76,109

396,353


condensed balance sheet, total equity and liabilities


31 March 31 December 1 January

Note 2013 2012 2012 2012

equity attributable to A.P. Møller - Mærsk A/S


total equity

Borrowings, non-current

Other non-current liabilities

total non-current liabilities

Borrowings, current

Other current liabilities

3 Liabilities associated with assets held for sale

total current liabilities

2 total liabilities

total equity and liabilities

208,800

13,739

222,539

91,000

29,880

120,880

11,977

54,227

75

66,279

187,159

409,698

194,157

13,771

207,928

90,929

29,303

120,232

11,975

54,782

1,436

68,193

188,425

396,353

195,969

13,632

209,601

90,711

27,896

118,607

9,975

56,706

1,223

67,904

186,511

396,112

217,276

14,144

231,420

89,532

30,900

120,432

12,887

57,549

78

70,514

190,946

422,366


condensed cash flow statement



2013 2012 2012

Profit before financial items

Non-cash items, etc.

Change in working capital

Cash flow from operating activities before financial items and tax

Financial payments, net

Taxes paid

cash flow from operating activities

Purchase of intangible assets and property, plant and equipment

Sale of intangible assets and property, plant and equipment

Acquisition/sale of subsidiaries and activities, etc., net

cash flow used for capital expenditure

Purchase/sale of securities, trading portfolio

cash flow used for investing activities

Repayment of/proceeds from loans, net

Dividends distributed

Dividends distributed to non-controlling interests

Other equity transactions

cash flow used for financing activities

net cash flow for the period

Cash and bank balances 1 January

Currency translation effect on cash and bank balances

Cash and bank balances, end of period

Of which classified as assets held for sale

cash and bank balances, end of period

Cash and bank balances include DKK 8.0bn (DKK 7.0bn at 31 December 2012)

that relates to cash and bank balances in countries with exchange control or

other restrictions. These funds are not readily available for general use by the

parent company or other subsidiaries.

10,962

5,717

882

17,561

-889

-3,144

13,528

-9,281

1,223

-246

-8,304

-50

-8,354

-2,486

-

-85

21

-2,550

2,624

11,670

86

14,380

-

14,380

9,341

4,342

-1,151

12,532

-974

-5,096

6,462

-13,188

1,565

6,873

-4,750

-34

-4,784

-40

-

-164

-1,181

-1,385

293

12,119

-267

12,145

-5

12,140

46,433

25,693

-4,221

67,905

-3,207

-21,208

43,490

-45,845

9,878

210

-35,757

-22

-35,779

-1,234

-4,366

-1,109

-1,514

-8,223

-512

12,119

63

11,670

-

11,670


condensed statement of changes in equity


2013 a.p. Møller - Mærsk a/s

share trans- reserve reserve retained proposed total non- total capital lation for for earnings dividend control- equity reserve other hedges for ling equity distri- inter- invest- bution ests ments

equity 1 January 2013 4,396 -5,633 84 -665 205,343 5,275 208,800 13,739 222,539

Translation from functional currency

to presentation currency - 4,816 2 -29 - - 4,789 36 4,825

Other equity investments - - -21 - - - -21 1 -20

Cash flow hedges - - - -312 - - -312 3 -309

Share of other comprehensive income

of joint ventures, net of tax - - - - 10 - 10 - 10


of associated companies, net of tax - - - - -29 - -29 - -29

Tax on other comprehensive income - - - -1 - - -1 - -1

other comprehensive income,

net of tax - 4,816 -19 -342 -19 - 4,436 40 4,476

Profit for the period - - - - 4,010 - 4,010 450 4,460

total comprehensive

income for the period - 4,816 -19 -342 3,991 - 8,446 490 8,936

Dividends to shareholders - - - - - - - -85 -85

value of granted and sold share options - - - - 9 - 9 - 9

Sale of own shares - - - - 21 - 21 - 21

total transactions with shareholders - - - - 30 - 30 -85 -55

equity 31 March 2013 4,396 -817 65 -1,007 209,364 5,275 217,276 14,144 231,420


condensed statement of changes in equity – continued


2012 a.p. Møller - Mærsk a/s

share trans- reserve reserve retained proposed total non- total capital lation for for earnings dividend control- equity reserve other hedges for ling equity distri- inter- invest- bution ests ments

equity 1 January 2012 4,396 -3,007 65 -1,713 190,020 4,396 194,157 13,771 207,928

Translation from functional currency

to presentation currency - -4,341 -3 47 - - -4,297 -29 -4,326

Other equity investments - - -4 - - - -4 - -4

Cash flow hedges - - - 536 - - 536 -4 532


of joint ventures, net of tax - - - - 25 - 25 - 25


of associated companies, net of tax - - - - 72 - 72 - 72

Tax on other comprehensive income - - - -4 12 - 8 - 8

other comprehensive income,

net of tax - -4,341 -7 579 109 - -3,660 -33 -3,693

Profit for the period - - - - 6,152 - 6,152 517 6,669

total comprehensive

income for the period - -4,341 -7 579 6,261 - 2,492 484 2,976

Dividends to shareholders - - - - - - - -164 -164

value of granted and sold share options - - - - 16 - 16 - 16

Acquisition of non-controlling interests - - - - -736 - -736 -461 -1,197

Acquisition of own shares

Sale of own shares - - - - 11 - 11 - 11

Capital increases and decreases - - - - - - - 2 2

Tax on transactions - - - - 29 - 29 - 29

total transactions with shareholders - - - - -680 - -680 -623 -1,303

equity 31 March 2012 4,396 -7,348 58 -1,134 195,601 4,396 195,969 13,632 209,601

Acquisition of non-controlling interests relates primarily to the acquisition of additional shares in

West Africa Container Terminal Nigeria Ltd. and APM Terminals Apapa Ltd. After the acquisitions,

the Group's ownership percentages amount to 100% and 94%, respectively.

A.P. Moller - Maersk Group 35 /46 Interim Report 1st Quarter 2013

notes

Contents Page

1 Accounting policies 36

2 Segment information 37

3 Assets held for sale and associated liabilities 42

4 Acquisition/sale of subsidiaries and activities 42

5 Financial risks 43

6 Commitments 44


notes

1 Accounting policies

The interim consolidated financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as issued by the

International Accounting Standards Board (IASB) and as adopted by the eU and Danish disclosure requirements for listed companies.

The accounting policies are consistent with those applied in the consolidated financial statements for 2012, apart from the below.

The allocation of business activities into segments reflects the Group’s character as a conglomerate. Due to reduced activity management has

grouped Maersk FPSOs and Maersk LNG into Other businesses, which comprises Discontinued operations too.

As of 1 January 2013, the Group has implemented IFRS 11 Joint Arrangements with consequential amendments to IAS 28 Investments in

Associates and Joint ventures. In addition, the following have also been implemented: IFRS 10, IFRS 12, IFRS 13 as well as amendments to

IFRS 7, IAS 1, IAS 19, IAS 27 and Annual Improvements to IFRSs 2009-2011. Recognition and measurement changes are described below

while the other changes mainly concern presentation and disclosure requirements.

Jointly controlled entities and activities

IFRS 11 Joint Arrangements replaces IAS 31 Interests in Joint ventures and entails that agreements on joint management are to be classified

on the basis of the contracting parties' rights and obligations. Arrangements in which the contracting parties' rights are limited to net assets

in the separate legal entities (joint ventures) are no longer recognised proportionately, but according to the equity method, equivalent to

associated companies. Contractual relationships in which the parties have direct and unlimited rights and obligations to the assets and

liabilities of the arrangement (joint operations), will however continue to be recognised proportionately.

The Group's joint ventures are mainly found in APM Terminals, Maersk Drilling, and SvITzeR, whereas all arrangements in Maersk Oil are

classified or treated as joint operations. Activities of vessels that are part of pool arrangements are treated as joint operations. Thus far,

the earnings have been recognised in revenue based on time charter equivalents.

With a few exceptions, including A.P. Møller – Mærsk A/S's share of profit and equity, all items of the Group’s financial statement are affected

by the change, although not significantly. Comparative figures have been restated. The consolidated balance sheet's main items have been

impacted as follows1:

Balance sheet 31 March 31 December 1 January

2012 2012 2012

Intangible assets

Property, plant and equiptment

Financial non-current assets

Deferred tax

Total non-current assets

Current assets

total assets

equity attributable to A.P. Møller - Mærsk A/S


Total equity

Non-current liabilities

Current liabilities

total equity and liabilities

1 Impact related to the move of Discontinued operations to Other business is included in the above. The effect from this is immaterial.

The Group has applied the transitional provisions of IFRS 11.

pension obligations

IAS 19 employee Benefits results in a modified method for the calculated financing element of the period's pension costs for defined benefit

pension plan obligations. Comparative figures are not restated as the change is immaterial to the Group.

-2,425

-10,806

7,252

-475

-6,454

-2,257

-8,711

-

-5

-5

-6,831

-1,875

-8,711

-6,230

-13,249

11,277

-481

-8,683

-2,310

-10,993

-

-5

-5

-8,800

-2,188

-10,993

-2,408

-10,456

7,253

-450

-6,061

-2,329

-8,390

-

-7

-7

-6,540

-1,843

-8,390


2 Segment information


1st quarter 2013 Maersk Maersk apM Maersk Maersk line oil terminals Drilling supply service

external revenue

Inter-segment revenue

total revenue


and impairment losses, etc.

Depreciation and amortisation

Impairment losses

Reversal of impairment losses

Gain/loss on sale of non-current assets, etc., net



profit/loss before financial items (eBit)

Tax

net operating profit/loss after tax (nopat)



Free cash flow

investments in non-current assets1

Investments in joint ventures

Investments in associated companies

Other non-current assets

Assets held for sale

Other current assets

Non-interest bearing liabilities

invested capital, net

1 Comprise additions of intangible assets and

property, plant and equipment, including additions

from business combinations.

notes

2,699

12

2,711

1,345

336

-

-

-

6

-

1,015

189

826

1,003

-3,064

-2,061

2,619

936

1

27,143

-

3,073

3,763

27,390

3,644

2,230

5,874

1,137

403

-

-

38

137

96

1,005

66

939

1,364

-924

440

910

10,084

2,791

21,854

331

3,773

6,409

32,424

13,447

-

13,447

8,809

1,928

-

-

-

-

-82

6,799

4,846

1,953

6,547

-2,326

4,221

2,158

-

1,126

55,010

-

11,419

29,524

38,031

34,890

761

35,651

3,566

2,499

-

-

35

-

1

1,103

+47

1,150

4,306

-2,707

1,599

2,711

-

18

126,462

-

21,968

28,378

120,070

1,254

30

1,284

549

238

-

-

37

-

-

348

36

312

614

-165

449

159

-

-

12,600

-

1,413

1,383

12,630


notes


2 – continued

1st quarter 2013 Maersk Damco svitZer Dansk total tankers super- report- marked able segments

external revenue


total revenue




Impairment losses

Reversal of impairment losses





Tax




Free cash flow












13,628

-

13,628

570

170

-

-

-

-

-

400

99

301

426

-373

53

378

-

-

18,952

-

4,790

7,256

16,486

1,026

25

1,051

286

120

4

7

7

35

-

211

39

172

289

-83

206

136

442

-

8,775

-

952

1,406

8,763

4,254

112

4,366

72

40

-

-

10

9

-

51

17

34

10

-32

-22

60

164

1

2,009

-

4,474

3,622

3,026

2,484

2

2,486

248

325

-

-

10

-8

1

-74

8

-82

208

899

1,107

18

8

36

17,127

2,101

2,836

2,137

19,971

77,326

3,172

80,498

16,582

6,059

4

7

137

179

16

10,858

5,253

5,605

14,767

-8,775

5,992

9,149

11,634

3,973

289,932

2,432

54,698

83,878

278,791


notes


2 – continued

1st quarter 2012 Maersk Maersk apM Maersk Maersk line oil terminals Drilling supply service

external revenue


total revenue




Impairment losses





Tax




Free cash flow












Maersk Oil’s profit for 2012 included a tax income of

DKK 5.2bn from the settlement of a dispute regarding

tax collected by the Algerian national oil company,

Sonatrach S.P.A. The settlement related to an Algerian

tax imposed from August 2006.

2,439

17

2,456

1,196

317

-

-

-8

-

871

173

698

668

-156

512

141

877

-

20,833

-

2,809

3,283

21,236

3,541

2,506

6,047

1,262

391

-

598

114

81

1,664

381

1,283

1,054

-138

916

2,066

5,338

2,705

18,974

33

4,535

6,250

25,335

14,406

-

14,406

10,518

2,807

-

624

-

-31

8,304

963

7,341

6,439

-3,136

3,303

3,293

-

1,166

52,942

-

13,866

28,382

39,592

35,160

663

35,823

-921

2,306

23

6

-

1

-3,243

159

-3,402

-1,462

-6,411

-7,873

6,499

-

20

113,791

1,572

19,117

27,053

107,447

1,194

24

1,218

488

232

-

-4

-

-

252

14

238

494

-244

250

258

-

-

11,990

-

1,276

1,221

12,045


notes


2 – continued

1st quarter 2012 Maersk Damco svitZer Dansk total tankers super- report- marked able segments

external revenue


total revenue




Impairment losses





Tax




Free cash flow












13,030

-

13,030

510

146

17

20

-

-

367

100

267

87

-587

-500

615

-

-

18,093

-

4,680

6,815

15,958

1,346

28

1,374

317

139

-

14

30

-

222

37

185

511

-193

318

307

421

-

9,143

-

868

1,592

8,840

3,862

272

4,134

101

32

-

-

5

-

74

34

40

-248

4

-244

32

142

1

1,493

214

3,802

3,531

2,121

2,849

2

2,851

215

373

-

-

-7

-

-165

-

-165

-65

-1,537

-1,602

1,536

5

34

21,470

-

2,197

1,909

21,797

77,827

3,512

81,339

13,686

6,743

40

1,258

134

51

8,346

1,861

6,485

7,478

-12,398

-4,920

14,747

6,783

3,926

268,729

1,819

53,150

80,036

254,371


2 – continued

notes


1st quarter

2013 2012

revenue

Reportable segments

Other businesses

Unallocated activities (Maersk Oil Trading)

eliminations

total

profit for the period

Reportable segments

Other businesses

Financial items

Unallocated tax

Other unallocated items

eliminations

total

31 March

2013 2012

assets

Reportable segments

Other businesses


eliminations

total

liabilities

Reportable segments

Other businesses


eliminations

total

80,498

1,946

651

-3,771

79,324

5,605

459

-1,418

+165

-372

21

4,460

362,669

37,460

30,694

-8,457

422,366

83,878

3,019

111,820

-7,771

190,946

81,339

3,530

1,822

-5,380

81,311

6,485

1,105

-866

+138

-124

-69

6,669

334,407

42,422

28,393

-9,110

396,112

80,036

4,059

110,641

-8,225

186,511


3 Assets held for sale and associated liabilities

4 Acquisition/sale of subsidiaries and activities

notes

Amounts in DKK million (in parentheses the corresponding figures for 2012)


31 March 31 December

2013 2012 2012

assets held for sale

Non-current assets

Current assets

total

liabilities associated with assets held for sale

Other liabilities

total

Assets held for sale are primarily related to Maersk Tankers’ eight vessels in the handygas segment.

At 31 March 2012, assets held for sale primarily related to seven container vessels, of which four were owned and three held under finance

lease. Impairment losses of DKK 23m were recognised in relation to the seven container vessels.

The sale of Maersk LNG A/S was completed on 28 February 2012 with a gain of DKK 417m including an accumulated exchange rate gain of

DKK 42m previously recognised in equity. Furthermore Maersk equipment Service Company, Inc. was sold on 19 March 2012 with a gain of

DKK 443m.

acquisitions during the 1st quarter 2013

No acquisitions of subsidiaries or activities, to an extent of any significance to the Group, were undertaken in the 1st quarter 2013.

acquisitions during the 1st quarter 2012

On 4 January 2012, the Group acquired 100% of the shares in Skandia Container Terminal AB, which operates the container terminal in the

port of Gothenburg, Sweden. The acquisition will strengthen APM Terminals’ position in Scandinavia.

The total purchase price was DKK 1.3bn. The net assets acquired consist of terminal rights of DKK 1.6bn, property, plant and equipment of

DKK 0.2bn, current assets of DKK 0.1bn and liabilities of DKK 0.6bn.

From the acquisition date to 31 March 2012, Skandia Container Terminal AB contributed with a revenue of DKK 126m and a profit of DKK 7m.

If the acquisition had occurred on 1 January 2012, the Group’s revenue and profit would not have been materially different.

sales during the 1st quarter 2013

No sales of subsidiaries or activities, to an extent of any significance to the Group, were undertaken in the 1st quarter 2013.

sales during the 1st quarter 2012

Sales during 2012 primarily comprised Maersk LNG A/S and Maersk equipment Service Company, Inc., cf. note 3.

The total sales price for 2012 was DKK 8.5bn. Net assets sold amounted to DKK 7.7bn, hence DKK 7.5bn related to property, plant and equipment.

Non-current assets sold include assets that were previously classified as assets available for sale.

2,314

125

2,439

78

78

1,829

12

1,841

1,223

1,223

2,919

126

3,045

75

75


notes

5 Financial risks

currency risk

An increase of 10% in the USD exchange rate against all other significant currencies to which the Group is exposed, is estimated to impact

the Group’s profit before tax negatively by DKK 1.2bn (negative by DKK 0.8bn at 31 December 2012) and the Group’s equity, excluding tax,

negatively by DKK 2.0bn (negative by DKK 1.8bn at 31 December 2012).

The sensitivities are based only on the impact of financial instruments that are outstanding at the balance sheet date, and are thus not an

expression of the Group’s total currency risk.

interest rate risk

A general increase in interest rates by one percentage point is estimated, all other things being equal, to affect profit before tax negatively by

DKK 0.2bn (DKK 0.4bn at 31 December 2012). The effect on equity, excluding tax effect, of an increase in interest rates, as mentioned above,

is estimated to be positive by DKK 0.3bn (DKK 0bn at 31 December 2012).

This analysis assumes that all other variables, in particular foreign currency rates, remain constant.

liquidity risk

DKK million USD million

31 March 31 December 31 March 31 December

2013 2012 2012 2013 2012 2012

Interest-bearing debt

Net interest-bearing debt

Liquidity reserve 1

1 Liquidity reserve is defined as undrawn committed revolving facilities, securities and cash and bank balances, including balances in

countries with exchange control or other restrictions.

Based on the liquidity reserve, the size of the committed loan facilities, including loans for the financing of specific assets, the maturity

of outstanding loans, and the current investment profile, the Group's financial resources are deemed satisfactory. The Group’s long term

objective is to maintain a conservative funding profile, matching that of a strong investment grade company over the business cycle, with a

strong liquidity position in order to withstand fluctuations in the economy, and have the strength to exploit new and attractive investment

opportunities.

The average term to maturity of loan facilities in the Group was more than five years (about five years at 31 December 2012).

Amounts in DKK million (in parenthesis the corresponding figures for 2012)

18,075

14,399

11,853

17,547

13,439

14,007

102,977

81,997

75,874

100,686

80,209

66,028

102,419

78,446

81,759

18,196

14,489

13,408


notes

6 Commitments

operating lease commitments

At 31 March 2013, the net present value of operating lease commitments totalled DKK 65.7bn (USD 11.3bn) using a discount rate of 6%,

an increase from DKK 59.9bn (USD 10.6bn) at 31 December 2012, primarily due to new agreements in APM Terminals.

Operating lease commitments at 31 March 2013 is divided into the following main items:

• Maersk Line of DKK 26.1bn (USD 4.5bn)

• APM Terminals of DKK 24.8bn (USD 4.3bn)

• Maersk Tankers of DKK 7.7bn (USD 1.3bn)

• Other of DKK 7.1bn (USD 1.2bn)

About half of the time charter payments in Maersk Line and one-third of the time charter payments in Maersk Tankers, are estimated to

relate to operating costs for the assets.

capital commitments

Maersk Maersk APM Maersk Other Total Line Oil Terminals Drilling

31 March 2013

Capital commitments relating to acquisition

of non-current assets

Commitments towards concession grantors

total

31 December 2012

Capital commitments relating to acquisition

of non-current assets

Commitments towards concession grantors

total


20,500

-

20,500

19,118

-

19,118

1,915

1

1,916

2,084

-

2,084

54,321

25,174

79,495

54,095

22,605

76,700

4,447

13,552

17,999

3,925

13,044

16,969

9,498

11,621

21,119

9,757

9,561

19,318

17,961

-

17,961

19,211

-

19,211


notes

6 – continued

No.

newbuilding programme at 31 March 2013 2013 2014 2015 2016- total

Container vessels

Rigs and drillships

Anchor handling vessels, tugboats and standby vessels, etc.

total

DKK million

capital commitments relating to the newbuilding programme

at 31 March 2013 2013 2014 2015 2016- total

Container vessels

Rigs and drillships

Anchor handling vessels, tugboats and standby vessels, etc.

total

DKK 34.4bn (USD 5.9bn) of the total capital commitments is related to the newbuilding programme for ships, rigs, etc. at a total contract

price of DKK 46.3bn (USD 7.9bn) including owner-furnished equipment. The remaining capital commitments of DKK 45.1bn (USD 7.7bn)

relate to investments mainly within APM Terminals and Maersk Oil.

The capital commitments will be financed by cash flow from operating activities as well as existing and new loan facilities.


-

-

-

-

-

-

-

-

7

1

-

8

4,821

1,623

-

6,444

8

5

8

21

6,872

8,703

408

15,983

5

1

5

11

5,907

5,562

505

11,974

20

7

13

40

17,600

15,888

913

34,401

A.P. Moller - Maersk Group 46 /46 Interim Report 1st Quarter 2013

a.p. Møller - Mærsk a/s

esplanaden 50

DK-1098 Copenhagen K

Tel. +45 33 63 33 63

Registration no. 22756214

www.maersk.com

[email protected]

Board of Directors:

Michael Pram Rasmussen, Chairman

Niels Jacobsen, vice chairman

Ane Mærsk Mc-Kinney Uggla, vice chairman

Sir John Bond

Arne Karlsson

Jan Leschly

Leise Mærsk Mc-Kinney Møller

Lars Pallesen

John Axel Poulsen

erik Rasmussen

Rob Routs

Jan Tøpholm

Management:

Nils S. Andersen, Group CeO

Kim Fejfer

Claus v. Hemmingsen

Søren Skou

Jakob Thomasen

Trond Westlie

audit committee:

Arne Karlsson, Chairman

Jan Tøpholm

Lars Pallesen

remuneration committee:

Michael Pram Rasmussen, Chairman

Niels Jacobsen

Ane Mærsk Mc-Kinney Uggla

auditors:

KPMG

Statsautoriseret Revisionspartnerselskab

PricewaterhouseCoopers

Statsautoriseret Revisionspartnerselskab

editorsJesper CramonFinn GlismandHenrik Lund

Design and layoute-Types & India

ISSN: 1604-2913

Produced in Denmark 2013

Colophon

interim report 2013st r e 1t qur a - maersk...oct 12, 2015 · highlights a.p. moller - maersk...

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