Moller-Maersk shares rise, firm to seek separate listing for drilling unit

Moller-Maersk shares rose as the Danish business shared its plans to spin-off its drilling unit and list it separately.

Moller-Maersk shares rise, firm to seek separate listing for drilling unit

Moller-Maersk shares are higher Friday, after the Danish conglomerate announced plans to spin-off its drilling business and list it separately on the Danish stock market. The firm, which operates in the energy, transport and logistics sectors, also reported second quarter EBITDA earnings of DKK883 million.

By 1005 BST, Moller-Maersk shares were 3.84% higher at DKK8,968. The stock has been a little mixed in recent weeks.

Moller-Maersk spin-off plans

In it’s Q2 interim report Friday, the Danish business shared plans to separate its drilling interests from the larger business and list it separately on the Danish stock exchange.

“For Maersk Drilling it has been decided to pursue a listing on Nasdaq Copenhagen in 2019 which will offer the A.P. Moller - Maersk shareholders the possibility to participate in the value creation opportunity of a globally leading pure play offshore drilling company with long-term development prospects,” the company said.

“As part of the preparation, debt financing of $1.5bn from a consortium of international banks has been secured for Maersk Drilling to ensure a strong capital structure after a listing,” it added.

The company went on to say that this move was part of its strategy to remain considered an investment grade rating.

“Maersk has concluded that Maersk Drilling as a stand-alone company presents the most optimal and long-term prospects for its shareholders,” the company said.

Earnings details

Aside from updating shareholders and the markets of its plans for Maersk drilling, Moller Maersk reported Q2 revenue growth of 24% to $9.5 billion, from the same period a year earlier. It also said that in H1 2018, revenue growth hit 27%.

And, in its full-year guidance, Moller-Maersk said that its outlook remains “subject to uncertainties due to the current risk of further restrictions on global trade and other factors impacting container freight rates, bunker prices and rate of exchange.”

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