Danish shipping and energy conglomerate Maersk Group booked a loss of US$1.9bn in 2016, negatively impacted by impairments of US$2.7bn in Maersk Supply Service and in Maersk Drilling as a consequence of an expected weaker outlook.

As a result of US$1.2bn and US$1.5bn of impairments seen by the respective units, the 'unsatisfactory loss' was a turnaround from the company's profit of US$925m registered in 2015.

Despite significant cost optimisation initiatives, Maersk Drilling and Maersk Supply Service were severely impacted by continued large scale cost reductions and project cancellations in the oil industry and the large inflow of new capacity over the last years.

Maersk Group expects its gross capital expenditure for 2017 to be in the range from US$5.5bn to US$6.5bn, as the company anticipates a gradual improvements in container rates.