Maersk better prepared for volatility
Danish shipping and oil group A.P. Moller-Maersk is better prepared for volatility than before the crisis, and it aims to boost its presence in emerging markets this year, its chief executive said in a company newsletter.
Chief Executive Nils Smedegaard Andersen said in the monthly Maersk Post newsletter on Monday that the group's container shipping business is able to boost or reduce capacity on shorter notice, which made it better prepared for volatility. "Volatility will most likely be a key word for 2011 and some years beyond, but we are better prepared for it now than we were in 2008," Andersen said in a lead article. Global trade would continue to grow, particularly in emerging markets, he said. "(Emerging market) economies are developing rapidly, and a growing middle class demand more imported consumer goods," Andersen said. "We already have a strong presence in emerging markets, but one of our priorities for 2011 is to tip the balance of our business from the 'old' to the new markets and dedicate even more attention and investments for them," Andersen said. "We are making very good cash flows and good profits, which means we have the strength to invest at the moment, probably also more strength than many of our competitors," Andersen said in an interview with the newsletter. He said the biggest challenge is to identify the right projects in energy, trade or infrastructure, and then work to get them. Andersen reiterated that it was a priority for the Maersk group to strengthen its oil and gas business in 2011, both in terms of reserves and operational capabilities.