Maersk Unveils $1 billion Share Buy-back Program

 

Maersk will buy back up to $1bn (DKK 6.7 billion) worth of shares despite its revenues being hit by the plunge in oil prices and declining freight rates. The buy-back program to be executed during a 12 months period.

 

The Danish company reported revenues of $10.5bn for the second quarter, compared to $12bn the same time a year ago. Its profits before tax jumped to $1.5bn, however, from $348m the year before.

 

The Group's revenue decreased by USD 1.4bn or 11.9% due to lower oil price and lower average container freight rates.

 

Its costs fell too, however, as the depressed market conditions pushed down the price of the "bunker" fuel that powers its vessels.

 

Maersk Line is the biggest transporter of freight by sea and, thanks to determined cost cutting, has preserved profits amid a slowing in global trade that the business depends on. Earlier this year the company sold a stake in Danske Bank to sharpen its focus on ships and ports.