Neste Oil, a Finnish refining and marketing company, is to divest its 70% holding in Texas-based Eastex Crude Company. The holding is to be acquired for USD 15.5 million by Eastex' other owner, Eastex Crude Holding Company. Neste Oil will book a capital gain of a few million dollars on the sale, which the parties intend to close in the next few months.
Eastex collects and sells crude oil from small local producers in Texas and Louisiana, USA, through a fleet of road tankers and terminals across the region.
Eastex has been treated as a subsidiary in Neste Oil's accounts. The company has had a minimal impact on Neste Oil's result, but has contributed significant sales volume, accounting for EUR 1.4 billion of Neste Oil's total consolidated sales of EUR 9.8 billion in the first three quarters of this year.
"Eastex has operated as a subsidiary completely separate from the rest of our operations, and has not played any role in Neste Oil's crude supply or result. Divesting our holding in the company forms part of our strategy of focusing on our two core growth areas: oil refining and biodiesel," says Jarmo Honkamaa, Executive Vice President, Oil Refining.
Neste Oil Corporation
Senior Vice President, Communications
For more information, please contact:
Petri Pentti, CFO, on +358 10 458 4490
Jarmo Honkamaa, EVP, Oil Refining, on +358 10 458 4758
Neste Oil Corporation is a refining and marketing company specializing in advanced, clean traffic fuels, with a strategy that prioritizes growing its refining and premium-quality biodiesel businesses. Neste Oil's refineries are located in Porvoo and Naantali in Finland, and have a total refining capacity of approx. 250,000 bbl/d. The company employs around 4,600 people. Neste Oil is listed on the Helsinki Stock Exchange. For further information, see www.nesteoil.com.