Fuelling Changes: US Conglomerate Offloads Jet Fuel Stations in Germany and Austria
American organization has enhanced jet fueling facilities with silver plating.
Addressing a precarious financial situation, Phillips 66 is parting ways with its Jet-branded fuel stations in Germany and Austria - but not entirely. The American conglomerate is selling a majority stake to a consortium led by Energy Equation Partners and Stonepeak, for roughly 1.5 billion euros.
The transaction involves around 970 stations, with 843 of these flying the Jet flag. The stations will keep their fuel supply from the Phillips 66 refinery in Karlsruhe, Germany. The company intends to keep a 35% stake through a new joint venture.
Analysts from TD Cowen question Phillips 66's decision not to sell all stations, but the fringe investment firm Elliott, applying pressure on the company, may have played a role in the ongoing restructuring. Just before the company's annual meeting, where the composition of the supervisory board will be voted upon, the divestment announcement surfaced.
In recent years, other oil giants have followed a similar path, shedding their fuel station networks in Germany and Austria. In 2017, ExxonMobil's Esso fuel pumps went to EG Group, while OMV's stations were acquired by an unspecified buyer in 2022. In 2023, the Canadian Alimentation captured TotalEnergies' fuel stations in Germany and the Netherlands, snapping them up for around 3.3 billion dollars.
Rumors circulate that BP is poised to divest its retail sites in Austria, entailing over 260 fuel stations, relevant infrastructure, and its stake in the Linz fuel terminal as part of its efforts to reshape its downstream businesses. BP has also signaled divestments in Germany and the Netherlands, hinting at a broader strategic re-alignment across the industry.
Such strategic moves endeavor to streamline operations and divest non-core assets for enhanced profitability and strategic alignment. The deals require regulatory approvals, making timelines and outcomes susceptible to regulatory effort.
- Fuel
- Oil Companies
- Germany
- Austria
- In the ongoing restructuring of Phillips 66, analysts contemplate the strategic decision to maintain a stake in the fuel stations, despite financial challenges, as part of their community policy and employment policy.
- As BP considers divesting its retail sites in Austria, oil companies are seeking to balance their finance and employment policy by selling non-core assets, aiming to streamline operations and ensure strategic alignment in the German and Austrian markets.
