Maersk Energy CEO: Offshore Drilling Market Improving but Profitability Low
Photo: Maersk
The prospects of the offshore drilling market are improving with better earnings posted by oil companies, but conditions remain tough with drillers' profitability under pressure, the CEO of A.P. Moller-Maersk's energy business told Reuters on Tuesday.
"You see from the oil companies' 2016 and 2017 earnings that they've performed really well. You also see that they have started increasing capital expenditure," Claus Hemmingsen said on the sidelines of Maersk's capital markets day.
"But one of the reasons that they're faring better is also because they've put an enormous pressure on their suppliers.
"It is still a tough market but we see an increased activity and more tenders. So there is an increased uptake, but the profitability is still low and under pressure."
By Stine Jacobsen
