Depression in the containership sector could tip market leader Maersk Line into the red in the second quarter, analysts say.
However, attention ahead of AP Moller-Maersk’s results announcement is also focused on the potential for mergers and acquisitions under the new leadership of Soren Skou.
Analysts at Fearnley Securities project Maersk Line will book an adjusted loss of $151m in the three months to the end of June, compared with the $18m consensus loss.
While rates have been below expectations this year, Maersk Line is still expected to end 2016 in the black.
“We believe the container shipping industry is already well within ‘repair mode’,” wrote analysts Jonathan Staubo, Peder Nicolai Jarlsby and Espen Landmark Fjermestad.
“Entering the second half of 2016 we believe M&A opportunities will stand high on the new CEO’s agenda, and based on current depressed valuations it can only bring upside as we see it.”
Fearnleys is charting an adjusted profit of $781m from Maersk Line this year, ahead of the $559m consensus.
Analysts at Drewry Financial Research believe Maersk Line will lose $57m in the second quarter, compared with a profit of $31m in the first quarter, with AP Moller set for an adjusted profit of $228m.
Skou replaced Nils Andersen as group chief executive this year and is exploring strategic options for the business, including spin-offs.
“While the division may help unlock values of several key businesses, challenges include managing operational synergies and dis-synergies,” Drewry said.
