Vice CEO to Leave Maersk
- Business & Finance
Claus V. Hemmingsen is to step down as Vice CEO of A.P. Moller – Maersk and CEO of the Energy division, having successfully concluded the separation of the group’s oil and oil-related businesses.
As informed, the Energy division will close down latest by the end of June 2019, and Claus Hemmingsen will subsequently leave Maersk.
Hemmingsen joined Maersk in 1981 as a shipping trainee and has been stationed in Hong Kong, Singapore and Denmark, where he has held several leading positions within both the shipping and offshore industries. He was CEO for Maersk Drilling from 2005 and until his appointment as Vice CEO of A.P. Moller – Maersk and CEO of the Energy division in 2016.
The Energy division has since 2016 found new ownership structures for Maersk Tankers, Maersk Oil and Maersk Drilling focused on protecting the assets and capabilities of the businesses. A.P. Moller – Maersk managed to strengthen the financial stability and freed up resources to focus future growth on container logistics, executing on USD 12 billion worth of corporate transactions.
“We have now concluded the task of finding new structural solutions for the majority of A.P. Moller – Maersk’s energy businesses, enabling their continued development and growth under new ownership structures,” Claus Hemmingsen said.
Last week, Maersk unveiled it would no longer pursue a separation solution for its offshore marine services business. Maersk Supply Service will be reclassified from discontinued operations to continuing operations in A.P. Møller – Mærsk.
It has been estimated that Maersk’s transformation from a conglomerate to an integrated global container logistics company is to last between three to five years.
On April 2, Maersk investors expressed their concerns about the stage of the progress to remake the group. However, the main shareholder and the chairman of the group backed the management’s efforts being made in that context, Reuters reported.
Ane Maersk Mc-Kinney Uggla, chairwoman of the A.P. Moller Foundation, has described the shipping group as a “supertanker” taking a long time to turn around. Although 2018 was challending for the group, there have also been many good things in its transformation, according to the chairwoman.
In 2018, A.P. Moller – Maersk reported an increase in revenue of 26% to USD 39 billion compared to USD 30.9 billion reported a year earlier, with growth in all segments. EBITDA for the year was USD 3.8 billion, increasing from USD 3.5 billion seen in 2017, in line with the company’s latest guidance of USD 3.6 – 4 billion.
Net profit including discontinued operations was USD 3.2 billion, against a loss of USD 1.2 billion reported in the previous year, positively impacted by an accounting gain of USD 2.6 billion from the closing of the Maersk Oil transaction in 2018 and impairment in Maersk Drilling.