Investor Presentaiton slide image

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