Maersk suspends all new investment projects

[2008-12-23 16:54:39]

16 Dec 2008

DENMARK's AP Moeller-Maersk plans to cancel or postpone all new investment projects to free up cash to take advantage of investment opportunities that arise during the global credit crunch.

"We want to free up cash to allow us to seize investment opportunities if they occur," chief executive officer Nils Smedegaard Andersen said in an internal employee magazine.

Mr Andersen said the cancellations will not apply to projects its container shipping unit Maersk Line has already committed to, including the purchase of new container vessels and of Swedish tanker operator Brostroem AB for SEK3.62 billon (US$450 million), reported Bloomberg.

"We will run our business the next couple of years in a way where we do not need additional funds from banks," Mr Andersen said, adding that the company would also initiate cost-cutting measures, including the suspension of all business travel unless deemed "critical."

Mr Andersen also forecast that Maersk Line will earn "less money in coming years," amid decreasing container freight rates and falling energy prices which are expected to lower the earnings of its oil and gas unit.

Source: 航运在线

Keywords:World shipping

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