Maersk to offload drilling assets in latest move to exit energy

The world’s biggest shipping company, A.P. Moller-Maersk, said it turned in a profit, but is now spinning off its drilling unit as a stand-alone company, marking its latest step toward a complete exit from the energy industry.

Maersk, which owns the world’s biggest shipping operations and is working on turning itself into a pure transport company, said that the decision will take effect next year.

Soren Skou, CEO, said management had explored “all options” for the drilling unit before deciding on a separate listing in the Danish capital. “We believe this will create the best value for our shareholders,” he said.

The 114-year-old firm has been planning a historic break with its conglomerate structure since the summer of 2016. Aside from turning its back on the oil and gas industry following the 2014 slump in prices, Maersk has also sold off shares in Danske Bank A/S and exited a grocery business to focus exclusively on the container transport industry that it dominates.

As part of the preparation for the new listing, debt financing of $1.5 billion from a group of international banks has been secured for Maersk Drilling “to ensure a strong capital structure,” the company said.

Once Maersk Drilling becomes a separate company on the Nasdaq Copenhagen exchange, “a material part of the remaining Total SA shares” will be distributed to Maersk shareholders in the form of cash dividends, share buy-backs or as a distribution of the Total shares directly, the company said.