Corral Petroleum Holdings AB explores strategic options including the potential sale of Preem Holding AB / Preem AB

Following instructions from Preem's ultimate owner, Sheikh Mohammed Hussein Al Amoudi, Corral Petroleum Holdings AB (“CPH”) announces that a process aimed at exploring strategic options, including the potential sale of Preem Holding AB/Preem AB (“Preem” or “the Company”) has been initiated.

Preem, Sweden’s largest fuel company and Scandinavia’s leading producer of advanced renewable fuels, is currently executing the most significant transformation in the Company’s history. The goal is to be a highly profitable and climate neutral business in 2035, while at the same time continuing to supply renewable and traditional fuel to its customers – both in Sweden and abroad.

Preem Holdings AB is in a strong financial position, having generated sales of SEK 161bn and an operating profit (EBIT) of SEK 14.8bn in 2022. The Company continues to deliver strong results in 2023 and has a total available liquidity of SEK 16bn and a net leverage ratio of 0.3x as of the end of June 2023.

Following instructions from Preem's ultimate owner, Sheikh Mohammed Hussein Al Amoudi, the Board of Directors in CPH (“the Board”) has been tasked with undertaking a review process aimed at exploring strategic options including a potential sale of shares in the Company, which may include (albeit not limited to) a sale of 100 percent of the shares in the Company. The Board intends to conduct the review in a thorough and timely manner, taking the Company’s various stakeholders’ interests into account, including strengthening the financial position of the group as a whole and the interest of the ultimate owner to prepare for an orderly succession within the Al Amoudi family. The review will also consider that Preem is deemed a critical infrastructure of Sweden[1].

Jason Milazzo, chairman of the Board of Directors of CPH, comments: “The management is on a strong trajectory to deliver the most ambitious and critical plan in the Company’s history. Preem’s goal is to significantly increase renewable fuel production capacity in the coming years. The goal is to produce 5 million m³ of renewable fuels and have climate-neutral operations by 2035 at the latest. This would position the Company as one of the leading producers of renewable fuel in Europe, a bold ambition representing an industrial evolution that will require a long-term perspective and unwavering dedication.”

[1] Preem AB/Preem Holdings AB already today is governed by the Protective Security Act (“Säkerhetsskyddslagen”), and a potential transaction will be reviewed under the Swedish Foreign Direct Investment (FDI) Act, coming into force on 1 December 2023.

For more information about Preem, please contact:
Preem Press Office
press@preem.se / ludwig.kollberg@preem.se
+46 (0)70-450 10 01 (media enquiries only)

PREEM is Sweden’s largest fuel company. Preem’s refineries in Gothenburg and Lysekil account for about 80 percent of the Swedish refinery capacity and about 40 percent of the Nordic capacity. Together, they have a total refining capacity of over 18 million cubic meters per year. Our vision is to lead the transition toward a sustainable society. By 2035, Preem has set a goal to produce 5 million cubic meters of renewable fuels, and to achieve climate neutrality across the entire value chain. We refine and sell fuel, heating oil and lubricating oil as well as other products to companies and individuals. Most of our products, almost 60 percent, are exported to nearby markets mainly north-western Europe. We have a nationwide service network with over 500 filling stations for private and commercial traffic. Preem AB has around 1,500 employees, of which 1,100 work at our refineries. In 2022, Preem’s turnover was SEK 161 billion