Maersk Oil eyes Shell’s North Sea assets ahead of spin-off

“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”, Chairman Michael Pram Rasmussen said in a statement.

The conglomerate has been in business 112 years and will not focus on core businesses that include its Maersk Line, Damco, APM Terminals, Maersk Container Industry and Svitzer, while looking for solutions for its small energy operations.

Maersk said oil and oil related businesses “will require different solutions for future development including separation of entities individually or in combination from A.P. Moeller-Maersk in the form of joint ventures, mergers or listing”.

The new direction of the company will also see a management shake up that will see three executives step down.

Søren Skou, group CEO of AP Møller – Mærsk, said: “Both Energy and Transport & Logistics have strategies positioning them for growth and strategic agility”.

Maersk, the Copenhagen-based shipping giant, is to be split up with its energy interests directed more towards the North Sea.

There is likely to be growth in the tug business as it is aligned with the terminal and container businesses.

The company said Maersk Oil will adjust its strategy and focus in fewer areas, particularly the North Sea, where it expects to “gain scale”.

It said it would look for solutions for its oil and oil-related businesses within 24 months.

Product offering and customer experience will be improved based on the combined capabilities of Maersk Line, APMT and Damco in combination with industry leading digital solutions.

Maersk said it aims to expand its market share in the shipping industry every year through organic growth, but could grow faster through acquisitions. While the company did not put an estimated value on the two new companies, its overall market capitalization is 204 billion Danish kroner ($31 billion), according to financial data provider FactSet. “Its structural agility will enable management to pursue new and different structural solutions and investment”.

Maersk also said its chief financial officer, Trond Westlie, will be replaced by Jakob Stausholm, who’s now in charge of strategy at Maersk Line.

Maersk Oil is Denmark’s biggest offshore producer and stakes in producing assets in the United Kingdom and Norway, including a share of the massive Norwegian Johan Sverdrup field which due to come onstream in 2019. The latter is now finance chief at Maersk Oil, where current CEO Jakob Thomasen is stepping down with current COO Gretchen Watkins replacing him October 1.

Claus V. Hemmingsen will be appointed group vice CEO of AP Møller – Mærsk effective on 1 October 2016 and CEO for the energy division.