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Maersk Line reports that it spent $381 million more on bunker fuel in the first quarter of 2017 compared to last year, which contributed towards the firm recording a net loss for the period.

The Danish shipping giant's total spend on marine fuels jumped 95 percent to $782 million, up from $401 million during the corresponding three-month period in 2016.

The average price spent on bunkers by Maersk Line between January and March was $320 per tonne - a rise of $142, or 79.8 percent, on the $178-per-tonne figure recorded the previous year.

Results

In its key results for the first quarter, Maersk Line recorded a net loss of $66 million after tax, compared to the net profit of $37 million achieved last year.

Revenue during the period rose by $519 million, or 10.4 percent, to $5,493 million year-on-year, whilst the average freight rate increased by 4.4 percent; however, this was not sufficient to offset the 79.8 percent increase in the average bunker price, Maersk Line said.

Maersk Line noted that its bunker efficiency improved by 1.8 percent to 940 kg/FFE, compared to 957 kg/FFE the previous year. Unit cost at fixed bunker price increased by 3.5 percent compared to Q4 2016.

As regards overall group performance, A.P. Moller - Maersk Group achieved a net profit increase of $29 million, or 12.9 percent, to $253 million for the first quarter, up from $224 million the previous year.

Guidance for 2017

In its guidance for 2017, A.P. Moller - Maersk said that a $10-per-barrel change in the price of crude oil would result in the group's underlying result varying by $0.2 billion.

A $100 change in the price of bunker fuel would lead to the underlying result varying by $0.3 billion, A.P. Moller - Maersk noted.