Nordea: Maersk Oil must make more cuts in 2016

Even though Maersk Oil has significantly trimmed down expenses, the oil company could be forced to change its whole business structure in order to remain competitive. This is the assessment from Thina Margrethe Saltvedt, Chief Analyst for Nordea Markets in Norway.

Photo: Ole Jørgen Bratland/Statoil

The oil unit of Maersk Group has already shaved expenses down to the bare minimum. But the oil company must change it business structure in order to continue with a competitive edge. This is the analysis from Thina Margrethe Saltvedt, oil analyst at Nordea Markets in Norway.

"They made a lot of cuts last year, but it is far from enough - and definitely not with the low oil prices we are seeing now. The oil companies must be smaller depending on the fluctuations in the oil price. And with increased production in cheap areas such as Iran and Iraq, much more cheap oil will flow into the market. This means that all of the semi-expensive producers, such as Maersk, are not finished tightening their belts," says Thina Margrethe Saltvedt to Danish news agency Ritzau Finans.

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