Inter Pipeline has completed the sale of the majority of its European bulk liquids storage business, Inter Terminals, to the CLH Group for £420m cash. The divestiture comprises 15 storage terminals in the UK, Ireland, the Netherlands and Germany, with a total capacity of some 18m bbl (2.86m m3). The deal does not include Inter’s terminal assets in Sweden and Denmark.
Inter Pipeline says the proceeds from the sale will be used to reduce debt, strengthen its balance sheet and help in financing its capital expenditure programme, including the new Heartland Petrochemical Complex.
Inter Pipeline also reports that Inter Terminals generated funds from operations of C$36.3m in the third quarter. Average capacity utilisation was 99%, compared to 92% in third quarter 2019, with especially strong refined product storage demand in Denmark.
Commenting on the acquisition, CLH Group chairman Jose Luis Lopez de Silanes says it “represents a unique opportunity to continue the company’s international expansion and consolidate its presence in the European market”. CEO Jorge Lanza adds: “This transaction will expand CLH’s knowledge of chemical products and biofuel storage by gaining the experience of a European leader in these business segments. It is also in line with CLH’s strategy of diversification beyond hydrocarbons in response to the challenges of climate change.”[post_title] => Inter Pipeline completes terminal sale [post_excerpt] => [post_status] => publish [comment_status] => open [ping_status] => open [post_password] => [post_name] => inter-pipeline-completes-terminal-sale [to_ping] => [pinged] => [post_modified] => 2020-11-13 08:35:27 [post_modified_gmt] => 2020-11-13 08:35:27 [post_content_filtered] => [post_parent] => 0 [guid] => https://hcblive.com/?p=30469 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw )