Maersk, which has undertaken a restructuring of its divisions by selling off its energy units, will now continue to concentrate on investing in its containerized logistics in order to become a bigger player in the end-to-end supply chain.
On March 8, 2018, the sale of Maersk Oil to Total S.A was completed.
Maersk transferred its shares in Maersk Oil to Total and as consideration received 97.5 million Total shares, equalling US $5.6 billion.
Total also assumed a short-term debt totally $2.5 billion through a debt push down from A.P. Moller – Maersk into Maersk Oil, which will be repaid to A.P. Moller – Maersk after closing.
The accounting gain for A.P. Moller – Maersk totals $2.6 billion, reflecting a locked box interest and the positive developments of the Total S.A share price.
A.P. Moller – Maersk plans to return a material portion of the value from the Total shares to its shareholders during 2018/2019 in the forms of extraordinary dividend, share buyback and distribution of Total shares.
Read the “Maersk Line Q&A” for discussion from Maersk on the major issues shipping lines are facing
CEO of Maersk, Søren Skou said: “I would like to express our appreciation for the commitment demonstrated by Maersk Oil over the past 18 months to uphold a safe and solid performance, while at the same time successfully progressing on major development projects in the North Sea.
The focus and results achieved during the time of transition is a testament to the capabilities and professionalism of Maersk Oil’s people.
With the completion of the Maersk Oil transaction, we have taken a significant step in our strategy to focus A.P. Moller – Maersk on container shipping, ports and logistics.”
Denmark will become a new regional base for Total, with bases in Copenhagen and Esbjerg bases which will supervise Total’s operations in Denmark, Norway and the Netherlands.
The Copenhagen office will also host the Senior Vice President of Total’s North Sea and Russia Business Unit, along with a new Technical centre that will be establish to supplement the existing centres in Paris and Pau.
Vice CEO of Maersk and CEO of the Energy division, Claus V. Hemmingsen, commented: “We have today secured a financially strong and focused owner of Maersk Oil with a long-term investment interest in the industry.
We are very pleased to see Total’s plans to deliver growth, value creation and career opportunities for Maersk Oil’s employees, as well as upholding the long-term investment plans, especially in the Danish part of the North Sea.”
As part of the transaction, Total will take over all decommissioning liabilities. The Danish Energy Agency’s approval of the transfer conditions that Maersk assumes secondary liability for the decommissioning costs related to existing Danish offshore facilities should Total be unable to cover the costs.
Maersk Oil current provision for these costs totals $1.2 billion.
