Regulatory News:
Petroplus Holdings AG (SWX:PPHN) today announced that it has
completed its purchase of the Petit Couronne and Reichstett Vendenheim
refineries, located in France from Societe des Petroles (Shell). The
Petit Couronne Refinery and the Reichstett Vendenheim Refinery have
total nameplate capacities of 154,000 barrels per day and 85,000
barrels per day, respectively.
The net purchase price, including estimated inventory and other
adjustments, totaled approximately $785 million. Inventory barrels
included in the purchase were less than originally anticipated as a
result of a processing agreement. For the remainder of 2008, Petroplus
has entered into a processing agreement with Shell for approximately
half of the Petit Couronne refinery´s total throughput. In accordance
with the processing agreement, Shell will provide certain crude oils
and feedstocks while Petroplus will provide Shell a slate of lube oil
base stocks and other refined products. In exchange for which,
Petroplus will be paid a processing fee of approximately $5.50 per
barrel. The major portions of the processing agreement will end on
December 31, 2008, with certain lube oil processing arrangements to
continue until 2011.
Commenting on the acquisition, Robert J. Lavinia, Chief Executive
Officer of Petroplus, remarked, "We are very pleased to be adding
these two assets and a professional group of refining personnel to our
company. Both the Petit Couronne and Reichstett refineries have been
part of a world class organization for many years and we greatly
anticipate their contribution into our expanding refining system. We
expect to incorporate the refining knowledge and expertise of our
newest Petroplus employees to further elevate the best practices in
safe, reliable operations at all of our locations."
Commenting on the financing for the acquisition, Karyn F. Ovelmen,
Chief Financial Officer of Petroplus, said, "The net purchase price
was financed with cash on hand, drawings under our working capital
facility and proceeds from the issuance of convertible bonds.
Following the acquisition our net debt to net capitalization is about
40% which is slightly better than our original expectations. Our debt
outstanding is approximately $1.8 billion which consists mainly of our
$1.2 billion of long-term senior notes and $500 million of long-term
convertible bonds, which leaves Petroplus with tremendous short-term
liquidity and flexibility." Ms. Ovelmen continued, "By adding an
additional 38% of refining capacity, with a focus on middle distillate
production, to our system, these refineries represent another
significant increase to the earnings and cash flow potential of
Petroplus. Consistent with our disciplined growth and capitalization
strategy, immediately following the acquisition, we continue to
maintain a healthy balance sheet and a strong liquidity position."
Petroplus Holdings AG is the largest independent refiner and
wholesaler of petroleum products in Europe. Petroplus focuses on
refining and currently owns and operates seven refineries across
Europe: the Coryton refinery on the Thames Estuary in the United
Kingdom, the Ingolstadt refinery in Ingolstadt, Germany, the Belgium
Refining Company refinery in Antwerp, Belgium, the Petit Couronne
refinery in Petit Couronne, France, the Cressier refinery in the
canton of Neuchatel, Switzerland, the Reichstett refinery in Alsace,
France and the Teesside refinery in Teesside, United Kingdom. The
refineries have a combined throughput capacity of approximately
864,000 bpd.
