Maersk Group chairman resigns amid company split

Michael Pram Rasmussen, chairman of the board of directors of Danish shipping conglomerate A.P. Møller – Mærsk A/S, is stepping down from his role as the company reported only its second annual loss since World War II.    Michael Pram Rasmussen, chairman of the board of directors of Danish shipping conglomerate A.P. Møller – Mærsk A/S, is stepping down from his role, effective March 28, 2017, according to a statement from the company.
   The move comes as Maersk Group reported a net loss of $1.94 billion for 2016, only its second annual loss since World War II. The losses included $2.7 billion in write downs in its Maersk Drilling and Maersk Supply Service units.
   The company last fall announced it would split itself into two separate divisions – one focusing on transportation and logistics and the other on its energy business – both of which took a beating in the past two years due to a simultaneous drop in freight rates and crude oil prices.
   The current frontrunner to replace Rasmussen as chairman is former SAP CEO Jim Hagemann Snabe, a current board member and chairman of the board of directors at Siemens, who will likely be elected to the post following the company’s annual general meeting at the end of March.
   Snabe is expected to oversee the separation of Maersk’s energy units, which also include the once highly profitable Maersk Oil, as the company focuses more heavily on its core logistics and shipping operations.
   “In 2016, we took a decision to change the direction of the company,” said Rasmussen, who has served on the Maersk board since 1999. “With a new structure accomplished and a new leadership team established led by Søren Skou, we are ready to implement the new strategy focusing on developing Transport & Logistics and for the next generation to take the lead and respond to industry opportunities. Timing is right for me as well as for the company to retire as the Chairman.”
  “I am honored to be nominated as new chairman of the board,” added Snabe. “A.P. Møller – Mærsk is a very strong company, with an impressive history and impact on global trade and it has enormous potential in a world of constant change. I look forward to working with the board and the management team on the transformation that lies ahead of us, as well as securing a strong future platform for our oil and oil related businesses.”