Why Ethiopian Billionaire Mohammed Al-Amoudi Seeks to Sell Oil Refiner, Preem

Corral Petroleum Holdings AB (CPH), an oil refining company under the ownership of the esteemed Saudi-Ethiopian billionaire Sheikh Mohammed Hussein Al-Amoudi, has set its sights on divesting its subsidiary, Preem Holding AB.

This comes as Preem currently embarks on its most ambitious transformation to date, with a resolute mission to become a highly profitable and climate-neutral entity by 2035. 

Despite this transformation,  Preem remained steadfast in its commitment to supplying renewable and traditional fuels to customers both domestically in Sweden and abroad.

Al-Amoudi’s Preem: A Swedish energy powerhouse

Preem stands as one of Sweden’s prominent energy corporations, acclaimed for its pioneering role in producing advanced renewable fuels across Scandinavia. 

The company’s extensive reach encompasses over 550 petrol stations and two refineries situated in Gothenburg and Lysekil. 

It also constitutes a substantial 80 per cent of Sweden’s refining capacity and a notable 40 per cent of the Nordic refining capacity, amounting to an impressive 18 million cubic meters annually.

Preem’s impressive financial performance

In the fiscal year 2022, Preem Holdings reported remarkable sales figures of SEK 161 billion ($14.6 billion) alongside an impressive operating profit of SEK 14.8 billion ($1.3 billion). 

With an available liquidity pool of SEK 16 billion ($1.4 billion) and a net leverage ratio of 0.3x as of June 2023, Preem stands as a financially robust entity.

Mohammed Al-Amoudi and Stakeholder interests

In line with the directives of Preem’s esteemed beneficial owner, Sheikh Mohammed Hussein Al-Amoudi, the board of directors at CPH has assumed the critical responsibility of undertaking a comprehensive review process. 

This comprehensive review intends to explore various strategic alternatives, with the potential sale of the company’s shares, or even the entirety of the firm’s 100-percent stake, being among the possibilities under consideration.

The board is steadfast in their commitment to conducting this review meticulously and expeditiously, with due regard for the interests of diverse stakeholders. 

The review includes reinforcing the overall financial stability of the corporate group and facilitating an orderly succession plan within the esteemed Al-Amoudi family.