By Robert Harvey, Marek Strzelecki and Anna Hirtenstein
LONDON (Reuters) – European energy firm Varo Energy stays in communicate to acquire Preem’s 2 Swedish refineries in a financial institution on increasing want for low-carbon biofuels, 4 sector assets knowledgeable Reuters.
Varo has truly been growing fast in Europe’s refining and fuel buying and selling in the previous few years. The agency is backed by unique fairness titan Carlyle Group and the globe’s biggest buying and selling residence Vitol, which has truly appreciated doc revenues in the previous few years.
Varo would possibly buy the Gothenburg and Lysekil vegetation from Corral Petroleum Holdings, which has Preem, the assets claimed.
A Varo agent decreased to remark. Preem decreased to remark.
The assets claimed the value of the possible provide had not been clear because the decline in Europe’s refining margins has truly made offers much more troublesome, among the many assets claimed.
Preem’s modified income dropped 15% to $1 billion within the very first 9 months of 2024, nonetheless dove 94% to $28 million within the third quarter alone.
Varo presently has dangers in refineries in Germany and Switzerland and is growing in lasting fuel and buying and selling. It prepares to spend round $3.5 billion in between 2022 and 2026, with two-thirds dedicated to lasting powers.
Preem intends to spice up manufacturing of eco-friendly fuel to five million cubic metres by 2035, the agency has truly claimed. It likewise has a community of over 500 petroleum terminals in Sweden.
($ 1 = 10.8499 Swedish crowns)
(Additional protection by Ron Bousso andDmitry Zhdannikov Writing byRon Bousso Editing by Mark Potter)
