By Robert Harvey, Marek Strzelecki and Anna Hirtenstein
LONDON (Reuters) – European power company Varo Energy remains in speak to obtain Preem’s 2 Swedish refineries in a bank on expanding need for low-carbon biofuels, 4 sector resources informed Reuters.
Varo has actually been increasing quick in Europe’s refining and gas trading in the last few years. The firm is backed by exclusive equity titan Carlyle Group and the globe’s greatest trading residence Vitol, which has actually appreciated document revenues in the last few years.
Varo might purchase the Gothenburg and Lysekil plants from Corral Petroleum Holdings, which has Preem, the resources claimed.
A Varo agent decreased to comment. Preem decreased to comment.
The resources claimed the worth of the feasible offer had not been clear as the decline in Europe’s refining margins has actually made deals a lot more difficult, among the resources claimed.
Preem’s modified profits dropped 15% to $1 billion in the very first 9 months of 2024, however dove 94% to $28 million in the 3rd quarter alone.
Varo currently has risks in refineries in Germany and Switzerland and is increasing in lasting gas and trading. It prepares to spend around $3.5 billion in between 2022 and 2026, with two-thirds devoted to lasting powers.
Preem intends to boost manufacturing of eco-friendly gas to 5 million cubic metres by 2035, the firm has actually claimed. It likewise has a network of over 500 petroleum terminals in Sweden.
($ 1 = 10.8499 Swedish crowns)
(Additional coverage by Ron Bousso andDmitry Zhdannikov Writing byRon Bousso Editing by Mark Potter)
