On August 17, the Danish shipping giant A.P. Moller-Maersk confirmed that it would spin off its offshore drilling operation and list the unit in Copenhagen next year to focus entirely on transport and logistics.
Profit outlook
The Danish company, which cut its full-year profit outlook this August, last year sold Maersk Oil to French oil major total TOTF.PA in a $7.5 billion deal as part of its restructuring.
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. It sold stock worth $1.2 billion in July, leaving it with 78.3 million total shares, Maersk said.
Shares distributed
After the demerger of Maersk Drilling, the company has decided that the material part of its remaining shares in total will be distributed to shareholders.
Having evaluated different options for the unit said, “Maersk has concluded that Maersk Drilling as a stand-alone company presents the most optimal and long-term prospects for its shareholders”.
Debt funds secured
Furthermore, Maersk has secured debt financing of $1.5 billion from 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.
Statement issued by Maersk
A statement released by Maersk said, “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 and amortisation (EBITDA) of $883 million.
Did you subscribe for our daily newsletter?
It’s Free! Click here to Subscribe!
Source: Reuters
