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AP Moller - Maersk give up trying to sell offshore supply vessel arm

AP Moller - Maersk give up trying to sell offshore supply vessel arm
AP Moller – Maersk has given up on its attempts to sell or spin of its offshore supply vessel company Maersk Supply Service (MSS) due to distressed market conditions.

MSS was the one remaining business that Maersk had not found a solution for since it announced in the second half of 2016 that it would focus on container transport and logistics and divest of its oil and gas, offshore and tanker related businesses.

Read more: AP Moller - Maersk splits in two: separating transport & logistics and energy

Maersk said that the sector MSS operated in had shown clear signs of distress over the last three years with low company and asset valuations making it difficult to find an ownership structure for MSS.

"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," said Claus V. Hemmingsen, vice ceo of AP Moller - Maersk and ceo of the Energy division.

MSS which had been classed as a discontinued operation and an asset for sale since Q4 2017 will now be reclassified as continuing operations.

In the meantime MSS has embarked on a business diversification strategy with 30% of its 2018 revenues generated from areas including offshore wind, ocean cleaning and deep-sea mining.

“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,” said Steen S. Karstensen, ceo of MSS.

Find out how you can hear more from Mearsk coo Søren Toft at the Sea Asia Global Forum in Singapore

In 2018 MSS had revenues of $236m and an EBITDA of $3m, and EBITDA is forecast at close to breakeven for 2019.

For its other energy businesses rig owner Maersk Drilling is being demerged into a seperate listed entity on Nasdaq Copenhagen, Maersk Oil was sold to Total for $7.45bn, and Maersk Tankers was acquired by AP Moller Holding for $1.17bn.

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