Delivering the solutions

A.P. Moller – Maersk is shifting its focus to transport and logistics, as the process of separating out the oil and oil related businesses progresses. Claus V. Hemmingsen, Vice CEO of A.P. Moller - Maersk  and CEO of the Energy division, reflects on the structural solutions identified thus far and progress on others.  

delivering-the-solutions
Vice CEO of A.P. Moller - Maersk and CEO of the Energy division, Claus V. Hemmingsen: “There’s a future, not an end to this story and there’s really something to celebrate and be proud of for Maersk Oil. It’s a good, strong company that is yielding up value for A.P. Moller - Maersk and opportunities for colleagues.” Photo: Jesper Schwartz

“The resilience, dedication and loyalty shown by our colleagues is absolutely stunning, and I am deeply thankful for this,” says Claus V. Hemmingsen, Vice CEO of A.P. Moller - Maersk and CEO of the Energy division.

Reflecting on the process of finding structural solutions for the Energy businesses, the CEO of the division points out that it has been a time of uncertainty and concern. Yet during this time, the constructive reaction and hard work of our employees has kept the businesses performing – the basic foundation that is required in order to find those solutions. He is equally thankful to his own small team in the Energy division, who are also showing dedication to the task of finding solutions for the businesses, while working in positions that will no longer exist at the end of the process.

“I’ve been thoroughly impressed with how our colleagues in the Energy businesses have handled the situation. I really feel that it is the people in the businesses who make the difference. Our customers and partners have faith and trust in the companies, and that speaks volumes about the dedication and qualities of our employees,” Claus V. Hemmingsen says to the Maersk Post.

Total commitment

For all four businesses, the Energy division has been examining solutions including listings, trade sales and merger opportunities.

Keeping the businesses in good shape – even though they are all operating in market conditions that are challenging, to different degrees – has been the necessary groundwork for identifying and executing on the structural solutions.

Maersk Oil has done an excellent job in optimising cost and performance, while also exiting Qatar and pushing ahead with the major North Sea projects, Tyra, Culzean and John Sverdrup.

A.P. Moller - Maersk was investigating a listing of Maersk Oil, when the offer from Total came in. The terms of that offer made it more attractive than a listing would have been, in terms of price, commitment to Maersk Oil’s projects and employees, and commitments to Denmark, Claus V. Hemmingsen explains.

Our customers and partners have faith and trust in the companies, and that speaks volumes about employees’ qualities and dedication”

Claus V. Hemmingsen, Vice CEO of A.P. Moller - Maersk and CEO of the Energy division

“There’s a future, and not an end to this story and there’s really something to celebrate and be proud of for Maersk Oil. It’s a good, strong company that is yielding value for A.P. Moller - Maersk and opportunities for colleagues,” Claus V. Hemmingsen says.

In the case of Maersk Tankers, the market was, and remains, challenging. However, the sale to A.P. Moller Holding was a very good opportunity as it is a long-term investor that can further develop the tanker company.

Maersk Tankers has maintained a good and well run business despite the uncertainty and will keep its name – an important link to its history and the confidence of customers and partners – with its sale.

“A.P. Moller Holding knows this business and it is gratifying that Maersk Tankers can now look forward to developing further in the long term with a solid and committed owner,” says Claus V. Hemmingsen.

The most adverse market conditions have been those of Maersk Drilling and Maersk Supply Service, and here there has been no relaxation in the efforts to optimise the business. Impressively, both have had a number of commercial successes, including a string of new contracts in recent months.

“More details on the process for these businesses cannot be given at this time as solutions have yet to be identified,” says Claus V. Hemmingsen. “Over the last three to six months there have been signs of improved market conditions in the offshore drilling industry and this has, among other elements, raised confidence in finding a structural solution for Maersk Drilling within the next 12 months.

For Maersk Supply Service, the market situation remains difficult and it is more difficult to predict its future.”

It is important for A.P. Moller - Maersk that progress is being made so we can continue to focus on becoming an integrated transport and logistics company. Claus V. Hemmingsen notes that there has been unwavering support from the Board of Directors and owners, which has underpinned the process of identifying and executing on the structural solutions. He goes on to note that it is unusual for a company to strike so many large deals in such a short period of time.

“Finding the right solutions is important for everyone,” he says.

Claus V. Hemmingsen has been extremely pleased at the high level of employee retention throughout – again referring to the commitment and professionalism that he encounters every day in the businesses.

And he is happy whenever employees are given some more certainty about the future.

“The businesses have performed in a very challenging market and are maintaining their high safety focus,” he concludes. “We are very pleased that we have managed so far to find solutions that support a strong presence in Denmark.”

The businesses have performed in a very challenging market and are maintaining their high safety focus”

Claus V. Hemmingsen, Vice CEO of A.P. Moller - Maersk and CEO of the Energy division