Maersk keeping supply vessel business as strategy shift proves fruitful
Danish shipping giant Maersk which has been contemplating options for its offshore support vessel subsidiary Maersk Supply Service – including a potential sale – for two years, has decided to retain full ownership of Maersk Supply Service.
“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.
To remind, Maersk in 2016 said it would split the company into two separate entities: one focused on shipping and logistics, the other on oil and gas sector, with the aim to gradually divest the energy business.
It has so far sold Maersk Oil and Maersk Tankers and has recently decided to demerge the Maersk Drilling business, leaving it to find a solution for Maersk Supply Service, the operator of offshore supply vessels.
Commenting on Friday, Hemmingsen reminded that Maersk Supply Service launched a new strategic direction in the autumn of 2016 as a response to the oil and gas downturn. Apart from its core business, which is chartering of offshore vessels to oil and gas firms, Maersk Supply Services has also focused on pursuing of new business as an integrated solution contractor, and on diversifying into new markets.
The strategy is progressing well and in 2018 approx. 30 percent of Maersk Supply Service’s revenue was generated from new and diverse business, incl. offshore wind, ocean cleaning and deep-sea mining, Maersk said on Friday.
Diversification makes MSS less dependent on O&G
Steen S. Karstensen, CEO of Maersk Supply Service: “Our diversification initiatives are building presence in other markets and enable us to be less dependent on the traditional Oil & Gas market in the future. Our 44-vessel fleet has an average age of less than ten years and supports our integrated solutions offerings. With our modern fleet and skilled people, we are well positioned to take advantage of market opportunities in the future and differentiate us from our peers.”
“I am deeply impressed with the attitude and dedication shown by the Maersk Supply Service management and the entire organization both on- and offshore. Through a period of uncertainty and change, Maersk Supply Service has continued to deliver safe and efficient services and not least managed to develop their customer propositions and market position,” says Claus V. Hemmingsen.
Maersk Supply Service has the last two years been progressing towards becoming a stand-alone entity and today operates almost fully independently and will continue to do so, Maersk said.
Maersk Supply Service was classified as discontinued operation and held as asset for sale in Q4 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.
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