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MÆRSK BOARD DECIDES TO RETAIN MAERSK SUPPLY SERVICE SUBSIDIARY

Friday, March 29, 2019 

The AP Moller-Maersk Board of Directors has decided to retain full ownership of Maersk Supply Service, after having put it up for sale, without success, in 2017.

Maersk says that the offshore support vessel industry, which Maersk Supply Service operates within, has over the last three years exhibited clear signs of distress, reducing company market capitalisations and lower asset values, negatively impacting the ability to find a sustainable ownership structure for Maersk Supply Service outside of AP Moller-Maersk. The industry continues to be characterised by oversupply, financial restructurings and consolidation and the market outlook for the industry is expected to remain subdued in the near and mid-term.

"We have over the past two years been investigating various structural solutions for Maersk Supply Service. However, having been unable to establish any solutions meeting our objective of creating shareholder value, we have decided to retain Maersk Supply Service," said Claus V Hemmingsen, Vice CEO of AP Moller-Maersk and CEO of the Energy division. He continued: "Maersk Supply Service launched a new strategic direction in the autumn of 2016 as a response to the downturn, which is positioning the company stronger and with a more robust and differentiated platform to compete from, when we eventually see a recovery within their core markets in the Oil & Gas space."

Maersk Supply Service's strategy is focused on optimising the existing core business through time chartering out their assets, pursuing of new business as an integrated solution contractor, and by diversifying into new markets. The strategy is progressing well and in 2018 approx. 30% of Maersk Supply Service's revenue were generated from new and diverse business, including offshore wind, ocean cleaning and deep-sea mining.

"Our diversification initiatives are building presence in other markets and enable us to be less dependent on the traditional Oil & Gas market in the future. Our 44-vessel fleet has an average age of less than ten years and supports our integrated solutions offerings. With our modern fleet and skilled people, we are well positioned to take advantage of market opportunities in the future and differentiate us from our peers," said Steen S. Karstensen, CEO of Maersk Supply Service.

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