Total S.A. Total Sells Its Fuel Marketing Activities in Italy and Focuses on the Lubricants Business
November 03 2017 - 1:34PM
UK Regulatory
TIDMTTA
Total (Paris:FP) (LSE:TTA) (NYSE:TOT) and Erg have signed an
agreement1 with the Italian Group API to sell their fuel marketing
and refining assets in the TotalErg joint venture (Erg 51%, Total
49%). Following the divestment of the LPG and Commercial Sales
businesses, this third transaction completes the sale of all
TotalErg's assets, for a total amount of around EUR750 million.
In parallel with this agreement, Total is reinforcing its
lubricants business in Italy by buying out Erg's 51% stake in the
lubricants activities of the joint venture that will consequently
be terminated.
Created in 2010 by merging the Total and Erg activities,
TotalErg is the fourth-largest fuel marketer in Italy, a fragmented
market where the profitability outlook was not in line with the
Group's expectations despite the joint efforts of the two
shareholders. The lubricants market, however, does offer
satisfactory growth perspectives and this consolidation is in line
with the Group strategy in this business sector.
"The successful monetization of these mature activities in a
challenging market is another example of our active portfolio
management strategy in Marketing & Services. It also helps
reduce our refining capacity in Europe while taking advantage of a
favorable market," said Momar Nguer, President, Marketing &
Services. "The buyout from Erg of the lubricants activity allows us
to focus and expand this high-return business. In addition, we will
maintain our presence in the truck refueling business in Italy with
our European network AS24, as well as in aviation fuels."
Total in Italy
Total has been present in Italy for 60 years. The Group markets
aviation and truck fuel, lubricants, additives, special fluids and
related services. In addition, it operates the Tempa Rossa oil
field, currently under development, and has interests in five other
exploration blocks (four of which it operates), all located in the
same region of the southern Apennines.
Total affiliates, Hutchinson in materials, Saft in batteries and
SunPower in solar panels distribute their products in the
country.
About Total
Total is a global integrated energy producer and provider, a
leading international oil and gas company, a major player in
low-carbon energies. Our 98,000 employees are committed to better
energy that is safer, cleaner, more efficient, more innovative and
accessible to as many people as possible. As a responsible
corporate citizen, we focus on ensuring that our operations in more
than 130 countries worldwide consistently deliver economic, social
and environmental benefits.
www.total.com
TotalMedia Relations:+33 1 47 44 46
99presse@total.com@TotalPressorInvestor Relations: +44 (0)207 719
7962ir@total.com
* * * * *
Cautionary note
This press release, from which no legal consequences may be
drawn, is for information purposes only. The entities in which
TOTAL S.A. directly or indirectly owns investments are separate
legal entities. TOTAL S.A. has no liability for their acts or
omissions. In this document, the terms "Total" and "Total Group"
are sometimes used for convenience where general references are
made to TOTAL S.A. and/or its subsidiaries. Likewise, the words
"we", "us" and "our" may also be used to refer to subsidiaries in
general or to those who work for them.
This document may contain forward-looking information and
statements that are based on a number of economic data and
assumptions made in a given economic, competitive and regulatory
environment. They may prove to be inaccurate in the future and are
subject to a number of risk factors. Neither TOTAL S.A. nor any of
its subsidiaries assumes any obligation to update publicly any
forward-looking information or statement, objectives or trends
contained in this document whether as a result of new information,
future events or otherwise.
1 Subject to the approval of the relevant authorities.
LEI: 529900S21EQ1BO4ESM68
Classification: 3.1 Additional regulated information required to
be disclosed under the laws of a Member state
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(END) Dow Jones Newswires
November 03, 2017 13:34 ET (17:34 GMT)
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