Petroplus Completes Purchase of Ingolstadt Refinery

abarrelfullabarrelfull wrote on 12 Aug 2014 14:28
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April 01, 2007

Petroplus Holdings AG (SWX: PPHN) today announced that it has completed the purchase of the Ingolstadt refinery located in Ingolstadt, Germany, together with selected wholesale operations. The Ingolstadt refinery has a rated crude capacity of 110,000 barrels per day and its major units include atmospheric and vacuum distillation units, a catalytic reformer and a fluid catalytic cracking unit.

“We are very pleased to be adding a very reliably run refinery and a professional group of refining personnel to our company. We expect to leverage this refining knowledge and expertise throughout our refining systems to further elevate the best practices in safe, reliable operations.”

Commenting on the acquisition, Thomas D. O’Malley, Chairman and Chief Executive Officer of Petroplus, remarked, “We are very pleased to be adding a very reliably run refinery and a professional group of refining personnel to our company. We expect to leverage this refining knowledge and expertise throughout our refining systems to further elevate the best practices in safe, reliable operations.” O’Malley added, “We think this is an opportune time to be adding quality assets to our portfolio as refining market fundamentals continue to support strong refining margins. The middle distillate cracks in the first quarter of 2007 are higher than any of the same periods in the previous three years. Almost 50% of the oil product production at Ingolstadt is middle distillates. This well run facility, with its production focused on the middle of the barrel, greatly enhances our inland market refining system.”

Commenting on the financing for the acquisition, Karyn F. Ovelmen, Chief Financial Officer of Petroplus, said, “The purchase, including inventory and other adjustments totaled approximately $627.5 million, was financed with cash on hand and drawings under our working capital facilities. After the financing for this acquisition, our debt outstanding is approximately $560 million and our total debt to total capitalization is about 26%.” Ovelmen continued, “Ingolstadt represents a significant increase to the earnings and cash flow potential of Petroplus. Its location in a niche inland market provides for product premiums on the oil products sold within the region. With Ingolstadt, we are adding an additional 37% of refining capacity to our system, increasing our geographic diversity and increasing the overall complexity of our refining system. This acquisition makes our company profitability and free cash flows more resilient to market fluctuations in oil product refining cracks.”

Bruce Jones, Chief Operating Officer, concluded, “Ingolstadt has an excellent safety record and Petroplus is committed to maintaining that safety record and continuing environmental compliance at Ingolstadt.”


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