Neste Oil Corporation
16 October 2006 at 00:15 p.m. EET
Neste Oil has decided to sell 73 traffic station properties in Finland to focus more clearly on refining and sales of cleaner traffic fuels. The transaction is valued at EUR 118 million, and the company expects to book a capital gain of approximately EUR 65 million on the sale in its fourth-quarter result.
Neste Oil has owned these properties through its subsidiary, Best Chain Ltd., and leased them, with the exception of fuel pump areas, to Ruokakesko Oy. Fuel pumps and related equipment, canopies, and fuel tanks are excluded from the sale.
The sale will not impact the operations of the Neste stations in question. Neste Oil will continue fuel sales under long-term rental contracts, and Ruokakesko will also become tenants of the new owner, an international investment company owned by Delek Real Estate Ltd., listed on the Tel Aviv stock exchange. Delek Real Estate owns additional properties in Finland, Sweden, and Germany, among others.
“Real estates are not part of our core business, and the profit we have made on these assets has not met our targets,” says Matti Peitso, Neste Oil’s Executive Vice President, Oil Retail. “We want to concentrate on fuel sales and use the capital freed up by the sale to develop Oil Retail and other Neste Oil's business over the long term.”
Neste Oil had about 890 outlets in Finland as of the end of September, and the sale covers 73 locations owned by the company. The sale will not affect Neste Oil’s unmanned outlets, D-stations serving the needs of commercial drivers, and the sites owned by independent Neste dealers.
Neste Oil expects the sale to be completed before the end of October.
Neste Oil Corporation
Senior Vice President, Communications
For further information, please contact:
Matti Peitso, Executive Vice President, Oil Retail on +358 10 458 5419
Petri Pentti, CFO, on +358 10 458 4490
Neste Oil Corporation is a refining and marketing company focusing on advanced, clean traffic fuels. The company's strategic focus is to grow in both oil refining and advanced biodiesel production. 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 (symbol: NES1V). For further information, see www.nesteoil.com.