Vitol to buy Antwerpen refinery
Europe's largest independent refiner of crude oil, Petroplus Holdings AG, announced on Friday that it has agreed to sell its Antwerp crude processing facility to Vitol Tank Terminals International B.V., a unit of energy trader Vitol, for $25 million.
Ian Taylor, president and chief executive of Vitol, said the acquisition "will add significant storage capacity" to their existing terminal business and "obvious synergies" with their global operators.
‘We are delighted to be adding the Antwerp facilities to our existing asset base. This processing and storage facility is well placed in the major refining and trading hub in North West Europe," Taylor said.
For Petroplus, the deal, which is expected to close in the fourth quarter of 2009, was a move to move to curb capital expenditure and means it does not have to invest any more money in the site, Reuters reported.
It will, however, result in an impairment charge of approximately $15 million for Petroplus in the third quarter of 2009 as the current net asset value of the Antwerp facilities is approximately $40 million.
"This sale will further allow the company to focus on its core refining business and results in a reduction in Petroplus's sustaining capital expenditure of $55 million over the next four years," Jean-Paul Vettier, chief executive officer of Petroplus, said.
Julius Baer analysts commented that the reduction of $55 million in capital expenditure is well worth the one time negative effect of the impairment.
Petroplus, the largest independent refiner and wholesaler of petroleum products in Europe, currently owns and operates seven refineries across Europe with a combined throughput capacity of approximately 864,000 barrels per day (bpd).
Ian Taylor, president and chief executive of Vitol, said the acquisition "will add significant storage capacity" to their existing terminal business and "obvious synergies" with their global operators.
‘We are delighted to be adding the Antwerp facilities to our existing asset base. This processing and storage facility is well placed in the major refining and trading hub in North West Europe," Taylor said.
For Petroplus, the deal, which is expected to close in the fourth quarter of 2009, was a move to move to curb capital expenditure and means it does not have to invest any more money in the site, Reuters reported.
It will, however, result in an impairment charge of approximately $15 million for Petroplus in the third quarter of 2009 as the current net asset value of the Antwerp facilities is approximately $40 million.
"This sale will further allow the company to focus on its core refining business and results in a reduction in Petroplus's sustaining capital expenditure of $55 million over the next four years," Jean-Paul Vettier, chief executive officer of Petroplus, said.
Julius Baer analysts commented that the reduction of $55 million in capital expenditure is well worth the one time negative effect of the impairment.
Petroplus, the largest independent refiner and wholesaler of petroleum products in Europe, currently owns and operates seven refineries across Europe with a combined throughput capacity of approximately 864,000 barrels per day (bpd).