Container-line Maersk reported first quarter revenues that increased 5.0% on a year earlier. That was the first increase since the third quarter of 2014. It was, however, 2.1% below analysts’ expectations. That may reflect a continued decline in the drilling element of the oil business, where revenues were unchanged on the fourth quarter and fell 47.4% on a year earlier.

Chart shows change in revenues by division  compared to a year earlier. Calculations based on company financial data. Source: Panjiva

The containerline division expanded by 10.4%, with average freight rates and revenue per FFE turning positive on a year earlier basis for the first time since 3Q 2014. The 7% growth on a quarter earlier tracked the overall market development, as outlined in Panjiva research of April 18. Management stated volumes increased “above expectations” though it nonetheless retained its guidance for the division for the full year.

Chart shows change on quarter prior and year prior. Calculations based on company financial data. Source: Panjiva

Maersk’s oil business limits its comparability to the rest of the containerlines, though the 10% increase in its containerline unit is well above the Japanese shippers (which climbed by a combined 3.0%) and Orient Overseas’s 6.4%. Panjiva analysis of published figures and consensus estimates show the containerlines’ revenues likely increased by 6.5% on a year earlier in the first quarter.

Left hand axis shows reported revenues for Maersk. Right hand axis shows containerline operators in aggregate with 1Q17 figures including analysts’ estimates gathered by Bloomberg at 4/19/2017 Source: Panjiva