Investor Presentaiton
47
A.P. Moller-Maersk Annual Report 2020
Directors' Report
Performance 2020
Terminals & Towage
Towage
Financial and operational performance
Towage reported a revenue of USD 681m (USD
695m), mainly impacted by lower rate per tug job as
well as volume decreases due to negative COVID-19
impact, partly offset by increased activity in Europe
with the acquisition of Port Towage Amsterdam,
as well as increased activity in Brazil and ramp-up
of activities in Tangier Med II, Morocco.
Currency impact was negligible for the full year.
EBITDA increased to USD 216m (USD 205m),
mainly due to lower costs, partly offset by one-
offs such as restructuring costs in Australia.
Harbour towage activities measured by the num-
ber of tug jobs increased by 2.5%, driven by positive
impact from the full consolidation of Port Towage
Amsterdam from beginning of 2020, partly offset
by lower activity in Australia, the UK and Scandi-
navia, mainly due to COVID-19. The Americas and the
Asia, Middle East and Africa regions had increased
activities compared to 2019.
For terminal towage, annualised EBITDA per tug
increased, primarily impacted by increase in the
Bahamas, in the Americas and in Egypt, in the
Asia, Middle East and Africa region, partly offset
by declines in Australia and in Europe.
Results from joint ventures and
associated companies
The share of profit in joint ventures and associated
companies decreased by 6% to USD 20m (USD
22m), impacted by the acquisition of the remain-
ing 50% of Port Towage Amsterdam, which has
been consolidated as a 100% owned subsidiary
from early January 2020.
Equity-weighted EBITDA increased by 4% to USD
237m (USD 227m), driven by Port Towage Amster-
dam now consolidating at 100%, as well as by
increase in EBITDA in consolidated entities across
all regions except for Australia.
Key initiatives
Contract extensions
Operations initiatives
$ Cost initiatives
2020
During 2020, a five-year harbour towage contract was
signed for Nacala Port, Mozambique, which started opera-
tions in Q3 2020, and operations in Bremerhaven, Germany,
were expanded with mooring services. Furthermore, eight
contract extensions were secured across the regions,
including a 10-year extension of the marine service contract
in Sakhalin, Russia, a five-year extension with Egyptian LNG,
a five-year extension in Point Tupper, Canada, a five-year
extension of the ship assist contract in St. Eustatius, and
various contract extensions in Oman, Australia, Argentina,
and Brazil. In Q4, preparations were made to start opera-
tions in Emden, Germany, in January 2021, and in Australia,
a plan was implemented to exit the port in Geelong and sig-
nificantly reduce the workforce in Port Jackson.
Also, the strategic growth initiatives launched in 2019
have progressed throughout the year together with projects
focusing on crew optimisation and general cost reductions.
Revenue Towage
Per region, USD million
2020
2019 Growth %
Australia
235
253
-7%
Fleet overview Towage
да
Europe
240
240
0%
Americas
106
109
-3%
Number of vessels
Owned
Chartered
Total
2020
2019
355
344
22
377
22
366
Newbuilding
The towage fleet increased
by eleven vessels to 377
vessels, with 355 owned
and 22 chartered at the
end of 2020. A total of 6
vessels are on order with
delivery in 2021.
Asia, Middle East and Africa
Total
100
93
8%
681
695
-2%
Per activity, USD million
Harbour towage
459
472
-3%
Terminal towage
228
226
1%
Delivery 2021 and onwards
6
1
Eliminations, etc.
-6
-3
Total
6
1
Total
681
692
-2%View entire presentation