2009 was not a good year for one of Denmark’s largest companies A.P. Møller-Mærsk according to its annual report for 2009.

The oil and shipping company returned a 2009 after-tax loss of DKK 5.5 billion compared with a profit in 2008 of DKK 17.5 billion and is the first-ever overall annual loss for the group.

Mærsk’s container business was the predominant loser – ending 2009 with an after-tax loss of DKK 11 billion compared with a 2008 profit of DKK 2.9 billion. Revenue in 2009 for the segment plummeted DKK 36 billion to DKK 110 billion.

"The loss is significant, but 2009 was an extraordinary year with historically low rates and low demand. We managed to limit the loss by saving around USD 2 billion and we will continue to strengthen our competitiveness even further. We expect to return to modest profits in 2010," says Group CEO Nils S. Andersen.

But Mærsk does expect a slightly better 2010 for its 120,000 employees in 130 countries, although there are uncertainties.

“Overall, the A.P. Moller - Maersk Group is expected to post a modest profit (Ed: in 2010). Cash flow from operating activities is expected to be well above the 2009 level, while cash flow used for investing activities is expected to be well below. The outlook for 2010 is subject to considerable uncertainty, not least due to developments in the global economy. Specific uncertainties relate to the container freight rates, transported volumes, the USD exchange rate and oil prices,” the Annual Report says.

It says that in the lame container shipping market, a 7-10% addition of tonnage is expected for Mærsk’s global container fleet. Cargo volumes are expected to rise by 3-5% in 2010 relative to 2009 and freight rates are also expected to rise.

“This will lead to a significant improvement in results if the level of vessels taken out of service is sustained. However, rates are not expected to lead to an acceptable return in 2010,” Mærsk says of the container business.