ShippingWatch

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.

Already a subscriber? Log in.

Read the whole article

Get access for 14 days for free.
No credit card is needed, and you will not be automatically signed up for a paid subscription after the free trial.

  • Access all locked articles
  • Receive our daily newsletters
  • Access our app
An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from ShippingWatch

HMM doubled revenue in Q1

South Korean container line HMM follows the trend of European competitors, which have already presented their first-quarter financials. Revenue doubled in a significant surge.

Further reading

Related articles

Latest news

See all jobs