A.P. Moller-Maersk A/S Series B

A.P. Moeller Maersk is an international shipping company. Co.'s operating segments are: Container shipping and related activities which include global container services, inland transportation, manufacturing and repair of containers and container depots, and logistics and forwarding activities; APM terminals; Tankers, offshore and other shipping activities which include tanker shipping of crude oil, oil products and gas, offshore drilling activities and operation of land rigs, supply vessel activities with anchor handling and platform supply vessels, ferry services and door-to-door transportation in Northern Europe; Oil and gas activities; Retail activity; and Shipyards and other activities.
  • TickerMAERSK B
  • ISINDK0010244508
  • ExchangeNasdaq Nordic Copenhagen
  • SectorIndustrial Transportation
  • CountryDenmark

Analysts

Nicolay Dyvik

LPG likely hit more than crude

We believe the volume of LPG production outages in Saudi Arabia following this past weekend’s attacks could weigh on the VLGC market as the US struggles to fill demand due to capacity issues, despite soaring oil prices which could widen the US-Asia arbitrage. For crude tankers, the available inventories in Saudi Arabia should be an adequate buffer for a production shortfall near-term, while potential US volumes could be a positive if outages are not repaired in 2–3 weeks’ time and be a positive tonne-mile boost for tankers.

Thanks to a better fundamental star rating, A P MOLLER - MAERSK A/S sees an upgrade to Neutral

The independent financial analyst theScreener just awarded an improved star rating to A P MOLLER - MAERSK A/S (DK), active in the Marine Transportation industry. As regards its fundamental valuation, the title receives an improved star rating and now shows 4 out of 4 possible stars. With regard to its market behaviour, it remains unchanged and can be qualified as risky. theScreener considers that these elements allow slightly upgrading its rating to Neutral. As of the analysis date September 6, 2019, the closing price was DKK 7,610.00 and its expected value was estimated at DKK 7,372.10.

Nicolay Dyvik

Update on US-China tariffs

The US-China trade war has hurt US exports of crude, LNG, and LPG to China. In H1 2018 China imported 25% of all US crude exports, 14% of LNG, and 9% of LPG, while in H1 2019, China imported only 4% of US crude exports, 2% of LNG, and 1% of LPG. Accordingly, new tariffs on oil would have less impact as the trade has already been affected. We believe there will be a further escalation in the trade war in the next 12 months (in line with DNB Market’s macro view), hence the trade war should continue to be a drag on the overall shipping segment in the coming year.

Nicolay Dyvik

A. P. Møller Mærsk (Hold, TP: DKK7600.00) - Unit costs close to all-time low

Maersk’s Q2 results beat our forecasts and consensus on a strong YOY improvement in unit costs, which puts the unit costs close to an all-time low. With risk of an escalation in the trade war and uncertainty over any further improvement in costs, we reiterate our HOLD, but have raised our target price to DKK7,600 (7,500).

Christoffer Wang Bjørnsen ...
  • Eivind Sars Veddeng
  • Joachim Gunell
  • Nicolay Dyvik
  • Ole-Andreas Krohn
  • Simen Mortensen

Northern Lights

Nicolay Dyvik

LPG likely hit more than crude

We believe the volume of LPG production outages in Saudi Arabia following this past weekend’s attacks could weigh on the VLGC market as the US struggles to fill demand due to capacity issues, despite soaring oil prices which could widen the US-Asia arbitrage. For crude tankers, the available inventories in Saudi Arabia should be an adequate buffer for a production shortfall near-term, while potential US volumes could be a positive if outages are not repaired in 2–3 weeks’ time and be a positive tonne-mile boost for tankers.

Nicolay Dyvik

Update on US-China tariffs

The US-China trade war has hurt US exports of crude, LNG, and LPG to China. In H1 2018 China imported 25% of all US crude exports, 14% of LNG, and 9% of LPG, while in H1 2019, China imported only 4% of US crude exports, 2% of LNG, and 1% of LPG. Accordingly, new tariffs on oil would have less impact as the trade has already been affected. We believe there will be a further escalation in the trade war in the next 12 months (in line with DNB Market’s macro view), hence the trade war should continue to be a drag on the overall shipping segment in the coming year.

Nicolay Dyvik

A. P. Møller Mærsk (Hold, TP: DKK7600.00) - Unit costs close to all-time low

Maersk’s Q2 results beat our forecasts and consensus on a strong YOY improvement in unit costs, which puts the unit costs close to an all-time low. With risk of an escalation in the trade war and uncertainty over any further improvement in costs, we reiterate our HOLD, but have raised our target price to DKK7,600 (7,500).

Nicolay Dyvik

Potential impact of Paris Accord

We analysed the potential impact by 2040 on shipping of the IEA’s three energy mix scenarios, with 5-year intervals. If contracting stays low (2019 YTD), we see the global order book falling 35% by 2020 from already 15-year lows, but if ordering picks up, asset lifecycles will being cut by 25% to meet the Paris Agreement goals.

Nicolay Dyvik

A. P. Møller Mærsk (Hold, TP: DKK7500.00) - Trade-war headwinds to persist

We forecast Q2 EBITDA of USD1.1bn, 8% below consensus of USD1.2bn (results due at 08:00 CET on 15 August). The stock has been range-bound since the onset of the trade war, and is highly sensitive to changes in dayrates. Due to escalating trade-war tension, we are now less positive on the rate outlook, and have downgraded the stock to HOLD (BUY) and cut our target price to DKK7,500 (9,500).

Christoffer Wang Bjørnsen ...
  • Eivind Sars Veddeng
  • Joachim Gunell
  • Nicolay Dyvik
  • Ole-Andreas Krohn
  • Simen Mortensen

Northern Lights

Håkon Astrup ...
  • Jørgen Lian
  • Karl-Johan Bonnevier
  • Nicolay Dyvik
  • Ole-Andreas Krohn
  • Rune Majlund Dahl

Northern Lights

Joachim Gunell ...
  • Jørgen Lian
  • Nicolay Dyvik
  • Ole Martin Westgaard
  • Ole-Andreas Krohn

Northern Lights

Alexander Aukner ...
  • Nicolay Dyvik
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Patrik Ling

Northern Lights

Eivind Sars Veddeng ...
  • Niclas Gehin
  • Nicolay Dyvik
  • Ole-Andreas Krohn

Northern Lights

Thanks to a better fundamental star rating, A P MOLLER - MAERSK A/S sees an upgrade to Neutral

The independent financial analyst theScreener just awarded an improved star rating to A P MOLLER - MAERSK A/S (DK), active in the Marine Transportation industry. As regards its fundamental valuation, the title receives an improved star rating and now shows 4 out of 4 possible stars. With regard to its market behaviour, it remains unchanged and can be qualified as risky. theScreener considers that these elements allow slightly upgrading its rating to Neutral. As of the analysis date September 6, 2019, the closing price was DKK 7,610.00 and its expected value was estimated at DKK 7,372.10.

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

MarketLine Department

Nippon Yusen Kabushiki Kaisha - Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments

Summary Marketline's Nippon Yusen Kabushiki Kaisha Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments report includes business description, detailed reports on mergers and acquisitions (M&A), divestments, capital raisings, venture capital investments, ownership and partnership transactions undertaken by Nippon Yusen Kabushiki Kaisha since January2007. Marketline's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organization to sustain its co...

Expert Corporate Governance Service (ECGS)

AP Moeller Maersk, April 2nd 2019

In general, A.P. Møller - Mærsk (APMM) is in compliance with the Danish regulations relating to organisation and procedures of the Annual General Meeting. Under ITEM C, although not legally required in Denmark, the board of directors and the executive management seek discharge. Under its guidelines, ECGS no longer approves discharge of the board of directors and/or executive management if there is no legal requirement for it. Since there is no such requirement in Denmark, ECGS recommends to OPPOSE. Under ITEM E, the board of directors seeks authorisation to repurchase own shares. As the magn...

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