Denmark’s Maersk to spin off drilling business, sell down Total stake 

Danish shipping company A.P. Moller-Maersk said on Friday which would likely spin off its offshore drilling operation in addition to also list which in Copenhagen next year as which focuses entirely on transport in addition to also logistics.

The Danish company, which cut its full-year profit outlook which month, last year sold Maersk Oil to French oil major Total TOTF.PA in a $7.5 billion deal as part of its restructuring. (Full Story)

As part of the sale of the oil unit, Maersk in March took a 3.7 percent stake, or 97.5 million shares, in Total. which sold stock worth $1.2 billion in July, leaving which with 78.3 million Total shares, Maersk said.

Following the demerger of Maersk Drilling, a “material part” of its remaining shares in Total will be distributed to shareholders, Maersk said.

Having evaluated different options for the unit, “Maersk has concluded which Maersk Drilling as a stand-alone company presents the most optimal in addition to also long-term prospects for its shareholders,” which said.

Maersk also said which had secured debt financing of $1.5 billion by a consortium of international banks “to ensure a strong capital structure after a listing”. Maersk has been at risk of having its credit rating downgraded.

An outright sale of the unit has been made difficult by an oversupplied drilling rig market, which has not yet recovered despite a recent gain in oil prices.

However, Maersk said on Friday global rig demand continues to rise, albeit at a slow pace, while oversupply still keeps utilisation rates at a moderate level.

The announcements came as Maersk confirmed preliminary second-quarter earnings before interest, tax, depreciation in addition to also amortisation (EBITDA) of $883 million.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

five × 3 =