SEPTEMBER 22, 2016 — A.P. Møller-Mærsk A/S is to reorganize the Maersk Group's businesses into two divisions: an integrated Transport & Logistics division and an Energy division.
The main growth focus going forward will be on delivering best in class transportation and logistics services as an integrated Transport & Logistics company.
The Maersk Board of Directors sees the oil and oil related businesses as requiring different solutions for future development, including separation of entities individually or in combination in the form of joint-ventures, mergers or listing.
"Depending on market development and structural opportunities, the objective is to find solutions for the oil and oil related businesses within 24 months," says the company.
Chairman of the Board, Michael Pram Rasmussen 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
Transport & Logistics will consist of Maersk Line, APM Terminals, Damco, Svitzer and Maersk Container Industry based on a one company structure with multiple brands. The mission of these businesses is to enable and facilitate global supply chains and provide opportunities for customers to trade globally.
Maersk says the strategy for Transport & Logistics rests on three pillars to deliver long term profitable growth.
- 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.
- By operating as one entity, Transport & Logistics will be able to harvest synergies and optimize operations to secure the industry's most effective and reliable network.
- Strong capital discipline and better utilization of assets will be ensured. When making investments, acquisitions will be the preferred option.
The strategies for the individual businesses will be adjusted accordingly.
Maersk Line will grow market share organically and through acquisitions.
- APM Terminals will focus on cost and utilization and increase its focus on operational excellence to enhance returns and deliver improved service to existing and new third 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.
Maersk says commercial as well as cost synergies will be unlocked by better utilization of existing assets and by the development of new digital solutions. The estimated synergies are expected to generate up to two percentage points ROIC improvement over a period of three years. No material synergies are expected in 2016.
Energy – Optimizing value
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 modeling, well technology and efficient operations.
Maersk Oil will aim to strengthen its portfolio through acquisitions or mergers. It will mature existing key development projects, while keeping exploration activities and expenses at a low level. Strategic projects already sanctioned or under development will continue as planned.
Maersk Drilling, Maersk Supply Services, and Maersk Tankers will continue to optimize their market position and operation with the existing fleet and order book.
With the reorganization comes a management reshuffle.
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,
Jakob Stausholm will be appointed Group CFO of A.P. Møller - Mærsk A/S as of 1 December 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 1 October 2016 and as CEO of APM Terminals effective on November 1. 2016 when he will also leave the Group.