Shipping and oil giant A. P. Moeller-Maersk is expected to post a 41.5 percent rise in 2004 net profit excluding special items, thanks mainly to rising freight rates and higher oil prices. The median forecast in a Reuters poll of five analysts on Wednesday pointed to net profit before special items of 18.4 billion crowns ($3.33 billion). Maersk holds 20 percent of the Nordic region's second largest bank, Danske Bank, and reports proceeds from this stake as well as foreign exchange gains as special items.
The company is due to release results on Wednesday March 31. Rising demand for container transport from high growth regions such as India and China pushed freight rates up last year and the trend has continued into this year.
Maersk's oil and gas business, the company's biggest division by contribution to profit, will benefit from high oil prices last year but both this division and the container shipping business are sensitive to dollar rate changes.
With container fundamentals and oil prices riding high, Maersk's shares have climbed 27 percent since it released its half-year report six months ago.
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