A.P. Moller – Maersk to retain full ownership of Maersk Supply Service
The A.P. Moller—Maersk Board of Directors has decided to retain full ownership of Maersk Supply Service.
The offshore support vessel industry, which Maersk Supply Service operates within, has over the last three years exhibited signs of distress, reducing company market capitalizations and lower asset values, negatively impacting the ability to find a sustainable ownership structure for Maersk Supply Service outside of A.P. Moller—Maersk, the company said. The industry continues to be characterized by oversupply, financial restructurings and consolidation and the market outlook for the industry is expected to remain subdued in the near and mid-term.
“We have over the past two years been investigating various structural solutions for Maersk Supply Service. However, having been unable to establish any solutions meeting our objective of creating shareholder value, we have decided to retain Maersk Supply Service,” says Claus V. Hemmingsen, vice-CEO of A.P. Moller—Maersk and CEO of the Energy division. “Maersk Supply Service launched a new strategic direction in the autumn of 2016 as a response to the downturn, which is positioning the company stronger and with a more robust and differentiated platform to compete from, when we eventually see a recovery within their core markets in the Oil & Gas space.”
Maersk Supply Service’s strategy is focused on optimizing the existing core business through time chartering out their assets, pursuing of new business as an integrated solution contractor, and by diversifying into new markets. The strategy is progressing well and in 2018 roughly 30 per cent of Maersk Supply Service’s revenue were generated from new and diverse business, including offshore wind, ocean cleaning and deep-sea mining.
Maersk Supply Service has for two years been progressing towards becoming a stand-alone entity and today operates almost fully independently and will continue to do so.
Maersk Supply Service was classified as discontinued operation and held as asset for sale in 2017. The company will be reclassified to continuing operations and will be included in A.P. Moller—Maersk’s income statement, balance sheet and cash flow statement as part of the segment manufacturing and others.