COPENHAGEN: Danish shipping giant Maersk posted a huge drop in net profit for the first quarter on Thursday as Yemeni rebel attacks force it to avoid the vital Red Sea route.

Maersk reported a net profit of $177 million in the first three months of the year, a 13-fold drop from the same period last year.

Turnover fell 13 percent to $12.4 billion, slightly lower than forecast by analysts surveyed by financial data firm FactSet. The company raised, however, its outlook for the full year, citing higher demand and increased rates.

It now expects an underlying core profit ranging between $4 billion and $6 billion, up from $1 billion-$6 billion previously.

“We had a positive start to the year with a first quarter developing precisely as we expected,” Maersk chief executive Vincent Clerc said in a statement. “Demand is trending towards the higher end of our market growth guidance and conditions in the Red Sea remain entrenched,” he said.