Moller Maersk's full-year results crater amid impairments

Danish oil field services firm Moller Maersk's full-year profits cratered as a result of multi-million dollar impairments linked to its Drilling and supply units.

Copenhagen-based Maersk registered a 2016 loss of $1.9bn in comparison to profits of $925m one year ago, amid post-tax impairments of $2.8bn primarily at Maersk Drilling and another $1.2bn for Maersk Supply.

Underlying profit meanwhile came in at $711.0m against $3.1bn one year ago.

That saw the company's return on invested capital fall to -2.7% in comparison to 2.9% in the year ago period and free cash flow dip into the red to the tune of $29.0m.

For the fourth quarter, sales declined 2.6% to hit $8.887bn, with operating losses worsening from -$2.5bn to -$2.68bn.

Free cash flow on the other hand improved from the $498m seen in the year ago quarter to $522m.

Looking out to 2017, the company said underlying profits would grow in comparison to the 2016 loss of -$711m, with gross capital expenditures seen at between $5.5bn and $6.5bn versus $5.0bn one year ago.

As of 0924 GMT shares in Maersk were down by 4.38% at 11,130.00 Danish kroner.