DHL introduces new technologies and delivery solutions in US to meet evolving demands of the urban consumer [Integrator]
DHL's continuing innovation efforts to develop strategies and tools to improve e-commerce logistics includes robotics and augmented reality
DHL eCommerce to launch Parcel Metro service in seven US cities in 2018 to provide greater choice, convenience and control to consumers
DHL is piloting a range of new technologies in its U.S. operations. As consumer expectations are rapidly evolving due to a number of major trends, including e-commerce, urbanization and sustainability in particular, logistics providers are being challenged to provide more flexible and efficient services. DHL is proactively addressing the evolving requirements of the market by introducing new technologies within its U.S. operations. DHL Supply Chain has introduced robotics - including the LocusBots and Sawyer collaborative robots - and augmented reality glasses in warehouse operations to improve productivity in the fulfillment of customer orders. DHL Express has been piloting artificial intelligence in its customer applications to further enhance its customer service. The company has registered a 10% increase in shipment processing accuracy through increased automation at its hubs and gateways, while its On Demand Delivery online service has increased the first time delivery success for e-commerce shipments from 80% to 92%.
The company's DHL eCommerce unit has launched DHL Parcel Metro, a new fast and flexible service for online retailers that meets consumers' increasing demand for same-day and next-day delivery. Parcel Metro utilizes customized software that allows DHL eCommerce to create a 'virtual delivery network' of local and regional contract couriers and crowd-sourced providers to ensure maximum flexibility and capacity over the last mile. Retailers can offer a fully branded suite of delivery options to their customers. For consumers, the service creates a seamless experience: an online and mobile interface allows consumers to track shipments in real-time, communicate special instructions to their courier, reschedule a delivery and rate their delivery experience. The new service is now available in Chicago, New York and Los Angeles, and will be launched in Dallas, Atlanta, San Francisco and Washington DC later in the year.
"E-tailers today recognize more and more that the customer experience - and their ability to build customer loyalty - is won and lost in how well the orders are fulfilled and delivered," said Charles Brewer, CEO, DHL eCommerce. "Deutsche Post DHL Group is constantly looking for new and innovative ways to offer the best service, quality and efficiency for our customers. The DHL Parcel Metro solution provides a technology solution to the last mile opportunity. Our digitalization journey is all about how we can add value to our customers, to our employees and to our shareholders. DHL Parcel Metro is part of a number of innovations we are actively implementing, including augmented reality glasses for greater pick accuracy, "follow me" robots, and autonomous vehicles."
"Eighty-six percent of consumers associate delivery as part of their total online shopping experience, according to recent research.1 It's therefore important for DHL to offer services that not only meet their needs, but do so in a highly consistent fashion. It's important for DHL to offer services that not only meet our customers' needs, but do so in a highly consistent fashion.1 DHL Parcel Metro provides that consistency, and offers retailers the ability to extend their brand and messaging to consumers throughout the final mile delivery for a unique shopping experience," said Lee Spratt, CEO, DHL eCommerce Americas.
DHL Supply Chain President of Retail, Jim Gehr said: "Innovative technology is becoming an extremely important element in e-commerce logistics because of changing customer demands. We are using software technology to speed order flow and to more efficiently organize distribution centers. Hardware solutions like LocusBots allow for faster picking. What we look for is the smart combination of software and hardware."
Posted at 16:23 パーマリンク
Panalpina Clean energy for 54,000 Australian homes with Downer(Panalpina) [Forwarder]
Panalpina has been increasing its participation in the renewable energy sector by investing significant efforts and resources in the industry through its Energy and Project Solutions. As mentioned in its most recent article on renewable energy in Australia, the company is currently showcasing a series of valuable ongoing projects that will help reshape Australia’s energy future.
Today’s turn is for leading integrated services company Downer, which awarded Panalpina with the Ross River Solar Farm contract in 2017. Panalpina will control shipping, customs clearance, inland transport, warehousing and site coordination for ocean freight from Asia and the USA.
From mango farm to solar farm
Construction is now under way on a disused mango farm in the dry tropics of Queensland. The Ross River Solar Farm will have 417,000 solar panels installed with the capacity to generate 148 MW of clean energy – enough to power over 54,000 homes. The farm is expected to operate for up to 40 years, after which it will be refurbished for further use or decommissioned, returning the area to its natural condition.
“Downer insisted on a long-term cooperation for solar projects in Australia, and Panalpina is already engaged in logistics RFQs for new initiatives. They have a strong pipeline and we have put a framework agreement in place so they can add projects to our scope of work as they come online,” says Justin Bound,country head of Energy and Project Solutions for Australia and New Zealand.
Once the Ross River Solar Farm is complete, Downer will have facilitated the delivery of more than 2.3 GW of clean, zero emissions electricity to the Australian market.
Posted at 16:11 パーマリンク
Deutsche Post DHL Group to build another mega parcel center near Berlin [Integrator]
Logistics company and the city of Ludwigsfelde sign purchase agreement for property on a site of about 165,000 square meters
New location will create up to 600 new jobs subject to wage agreements and social security contributions
New parcel center scheduled to go online in 2020
Deutsche Post DHL Group is constructing a new mega parcel center in the town of Ludwigsfelde in Brandenburg, just outside Berlin, as part of the company's ongoing investment in its parcel network. Up to 600 new jobs that are subject to wage agreements and social security contributions will be created after the new center on the 165,000m2 site goes into operation. The city of Ludwigsfelde and Deutsche Post DHL Group have already signed the relevant purchase agreement for the property. The sorting capacity of the new parcel center will be about 50,000 shipments per hour, providing additional support for the two existing parcel centers in nearby Rüdersdorf and Börnicke.
"The parcel market is still growing rapidly due to the e-commerce boom, in particular," says Jürgen Gerdes, Board Member for the Post - eCommerce - Parcel division at Deutsche Post DHL Group. "We are making our network even tighter, and continuously investing in the efficiency of our parcel infrastructure in order to carry on offering our customers the same high service quality in terms of speed and reliability in the future. Another reason we have become the best parcel provider in the market is because we have the best network. The new parcel center that we are now setting up is in a region with particularly strong parcel growth, indeed it represents an essential component of our strategy." The company already has a sorting capacity of more than 1 million parcels per hour in its 34 parcel centers - and Deutsche Post DHL Group expects average annual parcel growth of between five and seven percent until 2020.
"The development of our Eichspitze Ludwigsfelde 4.0 industrial part is well under way. The addition of one of the most important DAX companies will trigger the further development and marketing of the area", says Andreas Igel, mayor of the town of Ludwigsfelde.
The property occupies about 68 hectare in the area known as "An der Eichspitze," approximately 11 kilometers from the southern city limits of Berlin. The property is currently being developed to ensure the construction of the new parcel center will start as planned in summer 2018.
In 2016, Deutsche Post DHL Group commissioned its largest parcel center to date, in Obertshausen, which also has a sorting capacity of 50,000 shipments per hour. In the summer of 2017, construction work began on the similarly high-performance parcel center in Bochum, which is scheduled to begin operations in 2019.
Posted at 16:10 パーマリンク
DHL plans new logistics hub at Vienna airport [Integrator]
DHL Global Forwarding and DHL Freight sign land purchase contract
DHL Campus Vienna Airport to become central gateway to Eastern Europe
DHL Global Forwarding and DHL Freight signed a contract for purchasing land in the Vienna airport region today. Starting in summer 2018, the DHL Campus Vienna Airport will be developed on premises measuring roughly 60,000 sqm in the Fischamend district. The facility will take on a key role as a freight hub for Eastern Europe in the future. By establishing a joint site for DHL Global Forwarding and DHL Freight, synergies between the different transport modes - land, air and ocean - are to be exploited even more effectively.
"DHL Global Forwarding and DHL Freight are combining the individual strengths of their two networks at the new site in Fischamend, which will lead to an even faster, more efficient service for our customers," explains Uwe Brinks, CEO of DHL Freight. "The site is in proximity to Vienna airport and as such strategically well-located, providing us with low-threshold access to Eastern European markets and Germany. Through this project, we will establish an important new logistics hub together, creating a gateway into and out of the east and enabling us to further grow our volumes."
Both divisions will each build a warehouse including office buildings on the new site, connecting them to the airport and linking them to its infrastructure. To date, DHL Global Forwarding and DHL Freight managed their business from three locations in Vienna, which are now being merged on the new campus. This results in significant efficiency gains, especially in terms of turnaround times and handling costs. The new site will have a higher number of docks and will also have cross-docks for the first time. The newly acquired property borders the A4 freeway, which connects the airport with Vienna city center.
"Located directly at Vienna airport, Fischamend perfectly meets our requirements for the DHL Campus, through which we intend to bundle our expertise, improve our service, and consequently further strengthen our market position in Austria," says Christoph Wahl, managing director for Austria at DHL Global Forwarding.
"Good connections to Eastern Europe are particularly crucial for us. Thanks to our shared base with DHL Freight and the proximity to the airport, we will be able to serve this market even more effectively," adds Hermann Filz, CEO for Eastern Europe at DHL Global Forwarding.
The new warehouses and office buildings will not only meet the highest security standards (TAPA A) but will also comply with the most rigorous environmental protection requirements. The sustainable design and use of renewable energies will directly contribute to Deutsche Post DHL Group's goal of reducing all logistics-related emissions to zero by 2050. In addition to alternative drives and green transportation solutions, sustainable construction methods and modernization of Deutsche Post DHL Group sites will play a key role in achieving this goal.
"The relocation of the world's leading logistics company DHL to Vienna airport region is yet another important step for the dynamic development of the Airport City and will create new jobs while making the airport region even more attractive. This is also evident from the high level of interest shown by domestic and foreign advertisers. Given its proximity to the airport as a hub, an excellent service infrastructure and an optimal connection to the airport's infrastructure, the Vienna airport region offers perfect conditions for business locations. The government's decision to expand the eastbound rail link represents another important improvement," says Dr. Günther Ofner, Member of the Executive Board of Flughafen Wien AG.
"It is especially gratifying that the international logistics group DHL has chosen Fischamend for its new operational site and therefore creates new jobs and drives the local economy. The attraction as well strengths of the Vienna airport region are being highlighted by it," adds Mag. Thomas Ram, Major of the town council Fischamend.
Posted at 21:52 パーマリンク
DHL and Accenture unlock the power of blockchain in logistics [Integrator]
Trend report explores the technology's potential for improving transparency and traceability in supply chains and automating commercial processes
Blockchain technology spending expected to increase more than tenfold globally between 2017 to 2021
Proof of concept successfully demonstrated track and trace of pharmaceutical products from manufacturing to patients, showing potential to eliminate counterfeiting of drugs
DHL has released a trend report in cooperation with Accenture, a leading global technology consultant, on blockchain technology's potential to transform the logistics industry. Global supply chains are notoriously complex, with a diverse set of stakeholders, varying interests, and many third-party intermediaries - challenges that blockchain is well suited to address. The report includes initial findings on a working prototype developed by DHL and Accenture, which tracks pharmaceuticals from the point of origin to the consumer, preventing tampering and errors.
"The experiments with blockchain in finance are well known, but we believe logistics is an area where the new technology will have a truly profound impact," insists Matthias Heutger, Senior Vice President DHL Customer Solutions & Innovation. "Implementing productive solutions however, will require further technological development and, critically, collaboration between all stakeholders."
Blockchain is a new type of database system that maintains, records and authenticates data and transactions. In supply chains, products are assigned unique identifiers that allow their entire history to be captured as it moves to the end customer. Stakeholders validate this information in real time and if anyone tries to tamper with, alter or erase a record, everyone will know.
Saving patients by authenticating medications
"We see especially exciting potential for blockchain in pharmaceuticals, which is why we focused our proof of concept with Accenture on the life sciences and healthcare industry," says Keith Turner, CIO Chief Development Office, DHL Supply Chain. "By utilizing the inherent irrefutability within blockchain technologies, we can make great strides in highlighting tampering, reducing the risk of counterfeits and actually saving lives."
As many as one million lives are lost each year due to counterfeit medications, according to Interpol, and it is estimated that up to 30% of pharmaceutical products sold in emerging markets are counterfeit. DHL and Accenture created a blockchain-based serialization prototype with nodes in six geographies to track pharmaceuticals across the supply chain. The ledger tracking these medicines may be shared with stakeholders, including manufacturers, warehouses, distributors, pharmacies, hospitals, and doctors. Lab-simulations show how blockchain could handle more than seven billion unique serial numbers and 1,500 transactions per second.
"We've worked closely with DHL to understand and document the broad impact blockchain will have on supply chains of the future," adds Andreas Baier, Accenture lead for the travel and transportation industry and DHL client team leader. "Using a common, indelible and secure ledger, the industry can achieve much higher safety standards - from the factory to the patient - at much lower cost. This is one of several opportunities blockchain affords to restructure business processes while reducing cost and complexity."
Applying blockchain technology to supply chains
Blockchain technology shows great promise for dramatically improving the efficiency and reliability of supply chains in all industries. According to the International Data Corporation (IDC), global spending on blockchain solutions is forecast to reach US$2.1 billion in 2018, more than double the US$945 million spent in 2017. In 2021 annual spending is expected to reach US$9.7 billion.1
DHL and Accenture's pharmaceutical prototype is just one of the use cases highlighted in their trend report. Blockchain could also be used for asset management, to improve transparency and traceability, and to automate commercial processes with "smart contracts," which facilitate and verify the performance of contracts without third parties. The potential for blockchain in logistics is significant. However, moving from concepts and pilot applications to actually deploying viable solutions will require the technology to be further developed, organizational transformation and a willingness to collaborate between all stakeholders. Success depends on all parties working together to transform legacy processes and to jointly adopt new ways of creating logistics value.
Posted at 21:47 パーマリンク
Kuehne + Nagel sets up Innovation Centres in Europe and Asia to accelerate digital transformation [Forwarder]
Europe: Focus on major automation and innovative picking technologies
Asia Pacific: Focus on data analytics and IoT
Cooperation with universities and start-ups to co-develop innovative supply chains solutions
Strategic Partnership with Honeywell
With two newly inaugurated Innovation Centres in Utrecht, Netherlands, and Singapore, Kuehne + Nagel is partnering with customers to accelerate the development and adoption of new technologies and advanced supply chain solutions.
The Innovation Centre in Utrecht will primarily focus on major automation and innovative picking technologies. Kuehne + Nagel is among the first logistics providers to deploy collaborative robots in operations in line with a partnership with Universal Robots. The Asia Pacific Innovation Centre in Singapore will research and deploy new solutions on connected warehouses, with a focus on data analytics and Internet of Things.
Both centres hold partnerships with universities, start-ups and organisations to develop innovative supply chain solutions. The centres are open to customers who will get a vivid impression of how new technologies and solutions will impact their supply chains. The innovation centres will also serve as a sandbox to test and rapidly rollout new technologies.
Martin Kolbe, Chief Information Officer of Kuehne + Nagel: “We are working on seamless data exchange of different systems to drive automation and to minimise manual efforts. In addition we create new services and interfaces allowing customers to easily connect withKuehne + Nagel. Applying Big Data and predictive analytics, supply chains can be managed more efficiently and effectively.”
”The innovation centres in Singapore and Utrecht will boost our digital road map by exploring, applying and deploying leading technologies to manage our customers’ supply chains even more efficiently and effectively. The market for contract logistics services is transforming substantially due to the effects of digitalisation. With the Innovation Centers we invest in research and new technologies to accelerate this transformation”, said Gianfranco Sgro, Member of the Managing Board of Kuehne + Nagel International AG, responsible for Contract Logistics.
The Asia Pacific Innovation Centre, supported by the Singapore Economic Development Board (EDB), widens Kuehne + Nagel’s reach with the start-up and tech communities in Singapore and the Asia Pacific region.
Mr Kelvin Wong, Assistant Managing Director, EDB, commented: “We are glad that Kuehne+Nagel has chosen Singapore as its base, to develop new digital and IoT capabilities for its global operations. The Asia Pacific Innovation Centre will help strengthen collaborations within the logistics ecosystem, and accelerate the creation of innovative logistics solutions and best-in-class supply chain practices.”
During the inauguration ceremony in Singapore, Kuehne + Nagel announced a strategic partnership with global software-industrial provider Honeywell, supporting Kuehne + Nagel’s global innovation initiatives around Connected Warehouse. Kuehne + Nagel will deploy Honeywell’s industry-leading technology solutions globally at its warehouses, including voice directed solutions, cloud-based software, and warehouse automation solutions. The partnership is focused on productivity, accuracy, and efficiency improvements.
Posted at 21:15 パーマリンク
Panalpina reports record year in Air Freight [Forwarder]
International freight forwarding and logistics company Panalpina ended the year 2017 with strong Air Freight volumes and margins, while in the fourth quarter margin pressure continued to impact the financial results in Ocean Freight. For the full year, Panalpina’s reported EBIT increased from CHF 82.0 million (adjusted for restructuring costs 2016: CHF 109.9 million) to CHF 103.3 million and the reported consolidated profit increased from CHF 52.3 million (adjusted 2016: CHF 80.2 million) to CHF 57.5 million. In local currencies, reported EBIT and consolidated profit in 2017 reached CHF 106.0 million and CHF 60.0 million, respectively.
“2017 ended with record high volumes and profitability in Air Freight. We secured extra capacity early on in the year, well ahead of the exceptionally strong peak season when global capacity became scarce. Consequently, we were able to serve our customers in a very challenging market where others failed,” says Panalpina CEO Stefan Karlen. “In Ocean Freight, we kept volumes stable throughout the year, but as margin pressure continued into the fourth quarter, a full-year loss resulted for that part of our business. All in all, 2017 demonstrated Panalpina’s robustness as we continued to go through a period of transformation and disciplined strategy execution.”
Panalpina Group: Results for the Full Year 2017
(CHF million) YTD 2017 YTD 2016
Net forwarding revenue
Gross profit 1,397.8 1,424.6
EBITDA reported 146.2 131.7
EBIT reported 103.3 82.0
Consolidated profit reported 57.5 52.3
Non-recurring items (28.0)
EBITDA adjusted 146.2 159.6
EBIT adjusted 103.3 109.9
Consolidated profit adjusted 57.5 80.2
Earnings per share (in CHF) 2.48 2.29
Dividend per share * (in CHF) 3.75 3.75
* Proposed to the annual general meeting
Higher EBIT and consolidated profit
In 2017, Panalpina’s gross profit decreased 2% to CHF 1,397.8 million (2016: CHF 1,424.6 million), while total operating expenses decreased 1% to CHF 1,251.6 million (2016: CHF 1,265.0 million). Reported EBIT and consolidated profit increased year-on-year, but decreased when compared to respective 2016 figures adjusted for restructuring costs. Reported EBIT reached CHF 103.3 million compared to CHF 82.0 million a year before (adjusted 2016: CHF 109.9 million) and the EBIT-to-gross-profit margin stood at 7.4% up from 5.8% (adjusted 2016: 7.7%). The consolidated profit increased from CHF 52.3 million to CHF 57.5 million. Barring negative currency impacts, reported EBIT and consolidated profit in 2017 reached CHF 106.0 million and CHF 60.0 million, respectively.
Panalpina’s Air Freight volumes increased 8% in 2017. The company transported 995,900 tons of air cargo last year (2016: 921,400), the highest volumes in the company’s history. From January to December, gross profit, unit profitability and EBIT in Air Freight increased with every quarter. Compared to the same period of last year, gross profit per ton decreased 1% to CHF 642 (2016: CHF 646), while overall gross profit increased to CHF 639.4 million (2016: CHF 595.2 million). Reported EBIT in Air Freight increased from CHF 80.8 million (adjusted 2016: CHF 93.5 million) to CHF 110.3 million. The EBIT-to-gross-profit margin came in at 17.3% compared to 13.6% (adjusted 2016: 15.7%) a year before.
Panalpina’s Ocean Freight volumes increased 2% year-on-year. Panalpina transported 1,520,500 TEUs (twenty-foot equivalent units) in 2017 (2016: 1,488,500 TEUs). Gross profit per TEU decreased 6% to CHF 281 (2016: CHF 298), bringing gross profit to CHF 427.2 million (2016: CHF 443.8 million). Substantially lower margins, resulting from a challenging carrier environment and moderately increased costs due to the ongoing IT system implementation, meant that Ocean Freight recorded an EBIT loss for the full year of CHF 15.1 million, compared to a loss of CHF 0.6 million in 2016 (adjusted 2016: CHF 10.9 million).
In Logistics, gross profit decreased 14% to CHF 331.1 million year-on-year (2016: CHF 385.7 million), but picked up in the fourth quarter while ramp-up costs for various projects and investments in a new facility in Singapore impacted EBIT. For the full year, Logistics posted an EBIT of CHF 8.1 million, compared to CHF 1.8 million (adjusted 2016: CHF 5.6 million) for the same period last year.
In light of the solid net cash position, the board of directors will propose an unchanged dividend payment of CHF 3.75 per share to the annual general meeting on May 8, 2018. This is equivalent to a dividend yield of 2.5% (based on the 2017 year-end share price).
“The fact that all relevant economic indices are trending upwards makes us reasonably confident for 2018,” says Karlen. “We have made solid progress in Air Freight and reached a good cruising altitude on which we can build and that will allow us to reach the targeted conversion ratio in due course. In Ocean Freight, we know what needs to be done to make it into calmer waters again and in Logistics, the focus remains on top-line growth by further expanding our offering of value-added services.”
The Panalpina Group is one of the world's leading providers of supply chain solutions. The company combines its core products of Air Freight, Ocean Freight, as well as Logistics and Manufacturing to deliver globally integrated, tailor-made end-to-end solutions for eleven core industries. Drawing on in-depth industry know-how and customized IT systems, Panalpina manages the needs of its customers' supply chains, no matter how demanding they might be. Energy and Project Solutions is a specialized service for the energy and capital projects sector. The Panalpina Group operates a global network with some 500 offices in around 70 countries, and it works with partner companies in another 100 countries. Panalpina employs approximately 14,000 people worldwide who deliver a comprehensive service to the highest quality standards – wherever and whenever.
Posted at 21:03 パーマリンク
A.P. Møller - Mærsk A/S has tcompleted the sale of Maersk Oil to Total [Shipping Line]
A.P. Møller - Mærsk A/S [A.P. Moller - Maersk] has received all regulatory approvals and has today completed the sale of Mærsk Olie og Gas A/S [Maersk Oil] to Total S.A. [Total], which was announced on 21 August 2017.
A.P. Moller - Maersk has transferred its shares in Maersk Oil to Total and as consideration received 97.5 million Total shares equalling USD 5.6bn as of 7 March 2018. In addition to the shares, Total has assumed a short-term debt of USD 2.5bn via a debt push down from A.P. Moller - Maersk into Maersk Oil, which will be repaid to A.P. Moller - Maersk shortly after closing. The proceeds will after customary closing adjustments be used to reduce debt in A.P. Moller - Maersk.
The accounting gain for A.P. Moller - Maersk amounts to USD 2.6bn. This reflects a locked box interest and the positive development of the Total S.A. share price up to 7 March 2018 and is reduced by Maersk Oil's net profit realized in the period from 1 July 2017 until closing.
As announced in August, A.P. Moller - Maersk plans, subject to meeting its investment grade objective, to return a material portion of the value of the received Total shares to its shareholders during 2018/2019 in the form of extraordinary dividend, share buyback and/or distribution of Total shares.
"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," says Søren Skou, CEO of A.P. Moller - Maersk and continues:
"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 anchor point for Total with strong Copenhagen and Esbjerg bases, which will supervise all of Total's operations in Denmark, Norway and the Netherlands. Moreover, the Copenhagen office will host the Senior Vice President of Total's North Sea and Russia Business Unit. A new Technical centre is to be established in Copenhagen, supplementing Total's existing centres in Paris and Pau. Planned development schedules and investments in strategic and sanctioned projects will be upheld.
"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. Based on Maersk Oil's leading technology position, and its track record as a lean, efficient and trusted partner, Total has made Denmark a regional anchor point for its North Sea business, hereby ensuring a continued Danish stronghold in the North Sea, close to technology and innovation partners at the Danish technical institutions and in the oil and gas service industry," says Claus V. Hemmingsen, Vice CEO of A.P. Moller - Maersk and CEO of the Energy division.
It is an integral part of A.P. Moller - Maersk's purpose to safeguard the long-term viability of its companies by investing in and building value-creating businesses that have a positive impact on society. This is also a guiding principle in the work to define viable solutions for the oil and oil-related businesses.
"By selling Maersk Oil to Total, a leading global oil major, we have ensured the best possible foundation for the continued development of the people, capabilities and assets, on which Maersk Oil has prospered, creating value to the benefit of both A.P. Moller - Maersk and Denmark," says Jim Hageman Snabe, Chairman of the Board of A.P. Moller - Maersk and continues:
"On behalf of A.P. Moller - Maersk, I would like to extend my sincere gratitude to all employees in Maersk Oil for the passion, efforts and devotion to Maersk Oil and A.P. Moller - Maersk displayed by all through the years."
As part of the transaction Total will take over all decommissioning liabilities. The Danish Energy Agency's approval of the transfer conditions that A.P. Moller - Maersk assumes secondary liability for the decommissioning costs related to existing Danish offshore facilities corresponding to Maersk Oil's 31.2 % interest in the Danish Underground Consortium, should Total be unable to cover such costs. Maersk Oil's current provision for these decommissioning costs amounts to USD 1.2bn. A.P. Moller - Maersk's secondary liability will be reduced as part of the redevelopment of the Tyra project as well as future decommissioning of other existing facilities.
Maersk Drilling and Maersk Supply Service remain to have viable solutions established. Improved market conditions in the offshore drilling industry, as well as strategic progress in both businesses has raised A.P. Moller - Maersk's confidence in finding structural solutions for both before the end of 2018, why they have been reclassified as discontinued operations.
Posted at 20:54 パーマリンク
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