Ethiopian billionaire Mohammed Al-Amoudi looks to sell oil refiner Preem

Corral Petroleum Holdings AB (CPH), an oil refining company owned by Saudi-Ethiopian billionaire Sheikh Mohammed Hussein Al-Amoudi, wants to sell its subsidiary, Preem Holding AB.

Preem is one of Sweden’s largest energy companies and a leading producer of advanced renewable fuels in Scandinavia. Preem has more than 550 petrol stations and two refineries in Gothenburg and Lysekil, which constitute roughly 80 percent of Sweden’s and 40 percent of the Nordic refining capacity, up to 18 million cubic meters annually.

The company is currently executing the most significant transformation in its history. Preem aims to be a highly profitable and climate-neutral business in 2035 while continuing to supply renewable and traditional fuel to its customers – both in Sweden and abroad.

In 2022, Preem Holdings reported sales of SEK 161 billion ($14.6 billion) and an operating profit of SEK 14.8 billion ($1.3 billion). With an available liquidity of SEK 16 billion ($1.4 billion) and a net leverage ratio of 0.3x as of June 2023, the company remains financially robust.

Under the directive of Preem’s beneficial owner, Al-Amoudi, the board of directors at CPH has been entrusted with conducting a comprehensive review process.

This review aims to explore strategic alternatives, which may encompass but are not limited to, the potential sale of the company’s shares, possibly even the sale of the entire 100-percent stake in the firm.

The board is committed to executing this review diligently and expeditiously, taking into consideration the interests of various stakeholders, including fortifying the financial standing of the corporate group as a whole and facilitating an orderly succession plan within the Al-Amoudi family, all while acknowledging Preem’s status as a critical infrastructure of Sweden.