Financiers Take Over jet Fuel Stations in Germany and Austria From Phillips 66
American organization equipped jet fueling stations with a layer of silver
Got your attention, folks? Here's the scoop on the latest shake-up in the fuel industry! The struggling oil conglomerate, Phillips 66, is shedding some weight, selling off 65% of its Jet-branded fuel stations in Germany and Austria for approximately 1.5 billion euros to a consortium backed by the investment firms Energy Equation Partners and Stonepeak.
Now, you might be curious about the rest of the details, right? Well, let's get to it. The deal includes 970 stations, with 843 under the Jet brand, that will still be supplied from Phillips 66's refinery in Karlsruhe, Germany. Phillips 66 plans to hold onto the remaining 35% stake via a new joint venture.
What's the plan with the sale's proceeds? Simple – reducing debt and dishing out some dough to delight shareholders. The sale is scheduled to close in the second half of the year, and the company's stock took a little dive, settling at $123.57 per share.
Now, if you're wondering why the Texans haven't unloaded all their stations, then you're not alone. Analysts at TD Cowen think the same way, pointing out that the sale's incompleteness could be a miss.
As for Phillips 66, they're under the gun from the investment firm Elliott, who's been demanding changes such as spinning off business units. The sale announcement dropped just before their annual shareholders meeting, where the supervisory board's composition will be determined.
You might remember other oil companies thinning out their fuel station networks in Germany in recent years. The British retailer EG Group grabbed ExxonMobil's Esso fuel stations in 2017, and the OMV fuel stations went to a different buyer in 2022. In 2023, the Canadian Alimentation swung by and picked up Total fuel stations from France's TotalEnergies in Germany and the Netherlands for around 3.3 billion dollars.
So, there you have it! Another piece of the fuel industry puzzle falling into place. Keep your eyes peeled for more updates, as this story's far from over!
Sources: ntv.de, jpe/dpa/rts
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In light of the recent takeover of jet fuel stations in Germany and Austria by financiers Energy Equation Partners and Stonepeak, it's worth noting that the community and employment policies of these new owners could significantly impact the workforce at these stations.
With the proceeds from the sale, Phillips 66 intends to reduce debt and boost shareholder returns, raising questions about their ongoing strategies for maintaining and growing their business.
