CEO: Maersk Drilling strong enough to stand on its own af­ter list­ing

The Star Malaysia - StarBiz - - Foreign News -

STAVANGER (NoR­wAy): Drilling rig con­trac­tor Maersk Drilling will pro­vide strong com­pe­ti­tion for its peers when it is spun off from the AP Moller-Maersk con­glom­er­ate next year, its chief ex­ec­u­tive said.

AP Moller-Maersk said on Aug 17 it would spin off its off­shore drilling op­er­a­tion and list it in Copen­hagen next year, the lat­est move by the Dan­ish ship­ping com­pany to fo­cus en­tirely on trans­port and lo­gis­tics.

“We will be one of the strong­est (play­ers) when it comes to the bal­ance sheet, we will be one of the strong­est when it comes to the back­log (of or­ders),” Maersk Drilling chief ex­ec­u­tive Jo­ern Mad­sen told Reuters on the side­lines of an en­ergy con­fer­ence in Stavanger, Nor­way.

“We will be able to com­pete with the rest of the crowd,” he said.

Maersk Drilling counts BP, Aker BP, Equinor and To­tal among its big­gest cus­tomers.

News of the list­ing came af­ter the con­glom­er­ate tried to find a buyer for the unit, whose competitors in­clude Transocean , Sead­rill and Od­jfell Drilling.

Mad­sen re­it­er­ated on Tues­day that Maersk had “looked at var­i­ous op­tions” but did not pro­vide fur­ther de­tails about the process.

“At the end of the day, it gives share­hold­ers an op­por­tu­nity to be a part of a po­ten­tial (rig mar­ket) re­cov­ery ... I’m very happy about the de­ci­sion my­self,” he said.

Maersk has not pub­licly put a price tag on the drilling divi­sion, but an­a­lysts have pre­vi­ously val­ued it at around US$4.8bil.

Maersk Drilling re­ported a 2% in­crease in sec­ond-quar­ter EBITDA to US$159mil, as sales grew around 5% in the quar­ter to US$366mil. — Reuters

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