Maersk splits in two by Daniel J. Graeber Copenhagen, Denmark (UPI) Sep 22, 2016
Danish group A.P Moeller-Maersk said Thursday it was splitting the company in two, with its oil-related business spinning off to focus on the North Sea. The company said the split created a separate entity to focus on transport and logistics, and another to focus on building a strong position in the British, Danish and Norwegian waters of the North Sea. "Further, Maersk Oil will mature existing key development projects, while keeping exploration activities and expenses at a low level," the company indicated in a statement. "While the strategic focus will be reflected in a disciplined capital allocation, investments in strategic projects already sanctioned or under development will continue as planned." The company in June advanced on a restructuring plan by sidelining top executives and suggested at that time that it could split off its business units into separate groups. The oil division by then had already announced plans to cut about 40 positions from its regional offices and in June sustained a blow when it was passed over for a joint venture opportunity in the al-Shaheen oil field in Qatar. Maersk Oil last declared a profit of $102 million, down 70 percent year-on-year. It expected to break even if the price of oil ranges between $40 and $45 per barrel, relatively on par with recent trends. The division for the Danish conglomerate comes at a time when the energy industry in particular is exploring new ways of business as the price of oil holds at a level that's more than 50 percent less than two years ago. British energy company BG Group moved into a joint entity alongside Royal Dutch Shell in the largest merger of its kind since Exxon and Mobil joined forces. Several companies tied to the exploration and production side of the industry have filed for bankruptcy. "While we are rooted in shipping and energy, we must never become static in a dynamic world," Chairman of A.P. Moeller Holding Ane Maersk Mc-Kinney Uggla said.
Related Links All About Oil and Gas News at OilGasDaily.com
|
|
The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us. |