A.P. Møller-Mærsk A/S splits into two divisions: Transport & Logistics, Energy
Sept 26, 2016: Denmark based shipping giant A.P. Møller-Mærsk A/S’s reorganises portfolio of businesses into two independent divisions; an integrated Transport & Logistics division and an Energy division. This will ensure focus on driving synergies and developing new products and services in Transport & Logistics as well as focus on separately developing structured solutions for our oil and oil related businesses.
Søren Skou will continue as Group CEO of A.P. Møller - Mærsk A/S and CEO of the Transport & Logistics division. Claus V. Hemmingsen will be appointed Group vice CEO of A.P. Møller - Mærsk A/S effective on October 1, 2016 and CEO for the Energy division.
Michael Pram Rasmussen, chairman of the Board, says, “The industries in which we are operating are very different, and both face very different underlying fundamentals and competitive environments. Separating our transport and logistics businesses and our oil and oil related businesses into two independent divisions will enable both to focus on their respective markets. This will increase the strategic flexibility by enhancing synergies between businesses in Transport & Logistics, while ensuring the agility to pursue individual strategic solutions for the oil and oil related businesses.”
Transport & Logistics will consist of Maersk Line, APM Terminals, Damco, Svitzer and Maersk Container Industry based on a one company structure with multiple brands.
Product offering and customer experience will be improved based on the combined capabilities of Maersk Line, APM Terminals and Damco in combination with industry leading digital solutions.
Maersk Line will grow market share organically and through acquisitions.
APM Terminals will focus on cost and utilisation and increase its focus on operational excellence to enhance returns and deliver improved service to existing and new 3rd party customers.
Damco and Maersk Line will collaborate to deliver new innovative customer solutions supported by significant investments into digital technology.
Svitzer will pursue a growth strategy based on its market leading position and synergies with APM Terminals and Maersk Line will increasingly be explored.
Maersk Container Industry will collaborate with Maersk Line on technology development and efficient production planning.
Energy will consist of Maersk Oil, Maersk Drilling, Maersk Supply Service and Maersk Tankers.
Long term growth in energy demand and sharp reductions in investments in the global E&P industry in recent years, leading to an expected reduction in oil supply in the coming years provide opportunities to grow Maersk Oil based on the company’s key technical competencies. Maersk Oil will adjust its current strategy to focus its portfolio in fewer geographies to gain scale in basins, particularly in the North Sea, where it can leverage its strong capabilities within subsurface modelling, well technology and efficient operations. Maersk Oil will aim to strengthen its portfolio through acquisitions or mergers.
Further, Maersk Oil will mature existing key development projects, while keeping exploration activities and expenses at a low level. While the strategic focus will be reflected in a disciplined capital allocation, investments in strategic projects already sanctioned or under development will continue as planned.
Maersk Drilling, Maersk Supply Services, and Maersk Tankers will continue to optimise their market position and operation with the existing fleet and order book. Additional investments in the Group’s offshore service businesses and Maersk Tankers will be limited.
Financial reporting for the new structure will be effectuated from the financial year 2017.
Jakob Stausholm will be appointed Group CFO of A.P. Møller - Mærsk A/S as of December 1, 2016. On the same date, Group CFO Trond Westlie will step down as member of the registered management and leave the Group.
Jakob Thomasen will step down as member of the registered management and CEO of Maersk Oil effective on October 1, 2016 and will leave the Group on November 1, 2016.
Kim Fejfer will step down as member of the registered management effective on October 1, 2016 and as CEO of APM Terminals effective on November 1, 2016 when he will also leave the Group.
Søren Skou, says, “Both Energy and Transport & Logistics have strategies positioning them for growth and strategic agility. Transport & Logistics will be able to provide new and digitised world-class solutions for customers, while at the same time capture functional cost synergies and better utilization of existing assets. Energy is well positioned to leverage Maersk Oil´s expertise and gain scale in select geographies, particularly in the North Sea. Its structural agility will enable management to pursue new and different structural solutions and investment.”
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