By Robert Harvey, Marek Strzelecki and Anna Hirtenstein
LONDON (Reuters) – European vitality agency Varo Power is in talks to accumulate Preem’s two Swedish refineries in a guess on rising demand for low-carbon biofuels, 4 trade sources advised Reuters.
Varo has been increasing quick in Europe’s refining and gas buying and selling in recent times. The corporate is backed by personal fairness large Carlyle Group and the world’s greatest buying and selling home Vitol, which has loved file income in recent times.
Varo may purchase the Gothenburg and Lysekil crops from Corral Petroleum Holdings, which owns Preem, the sources stated.
A Varo spokesperson declined to remark. Preem declined to remark.
The sources stated the worth of the attainable deal wasn’t clear because the downturn in Europe’s refining margins has made transactions extra sophisticated, one of many sources stated.
Preem’s adjusted earnings fell 15% to $1 billion within the first 9 months of 2024, however plunged 94% to $28 million within the third quarter alone.
Varo already has stakes in refineries in Germany and Switzerland and is increasing in sustainable gas and buying and selling. It plans to take a position round $3.5 billion between 2022 and 2026, with two-thirds dedicated to sustainable energies.
Preem goals to extend manufacturing of renewable fuels to five million cubic metres by 2035, the corporate has stated. It additionally has a community of over 500 petrol stations in Sweden.
($1 = 10.8499 Swedish crowns)
(Further reporting by Ron Bousso and Dmitry Zhdannikov. Writing by Ron Bousso. Enhancing by Mark Potter)
