Danish group A.P Moeller-Maersk said Thursday it was splitting the company in two, with its oil-related business spinning off to focus on the North Sea. “There are ships enough already”, he said referring to the sector’s current oversupply of new vessels.
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In a statement, Maersk said the Transport & Logistics division would be based on “a one company structure with multiple brands” and would function “in a more integrated manner”, rather than the hitherto “arm’s-length principles”.
Maersk also said its chief financial officer, Mr Trond Westlie, will be replaced by Mr Jakob Stausholm, who is now in charge of strategy at Maersk Line.
Damco and Maersk Line are to collaborate to deliver new customer solutions as part of a strategic shift that will see AP Møller – Mærsk become an integrated transport and logistics company, while Maersk Oil will be separated out.
For Maersk Oil business, the company said that it would focus on fewer areas, especially in the North Sea. However, the company said investments in its offshore service businesses and Maersk Tankers will be limited.
Maersk Drilling, Maersk Supply Services, and Maersk Tankers will continue to optimize their market position and operation with the existing fleet and order book.
Claus Hemmingsen, head of Maersk Drilling, will to become CEO of the new energy division.
“The industries in which we are operating are very different, and both face very different underlying fundamentals and competitive environments, ” Chairman Michael Pram Rasmussen said in a news release.
Estimates for the sum of the parts vary, with Denmark’s Sydbank saying the Transport and Logistics division could be worth $26-$35 billion and the Energy division possibly $11-$23 billion, while Barclays analysts say a standalone Maersk Oil would now have a market value of around $4.7 billion.
“Depending on market development and structural opportunities, the objective is to find solutions for the oil and oil related businesses within 24 months”, it added.
It will consider joint ventures, mergers and listings to separate the four units from the parent group, either individually “or in combination”.
While he declined to comment on specific targets, he says options include shipping lines that operate mostly on trade routes overlapping with Maersk’s, which will “give us a lot of synergies”.
Maersk Oil is now developing the Culzean gas field which is expected to start production in 2019 and which could supply up to 5 percent of Britain’s gas demand.
Kim Fejfer will step down as member of the registered management effective on 1 October 2016 and as CEO of APM Terminals effective on 1 November 2016 when he will also leave the group.
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“It was as far as Maersk could go right now, because they could not have a ready-made solution for the energy division in these markets, if they also want to realise a decent price for the assets”, he said.
