Sheikh Mohammed Al Amoudi has triggered a process to explore options for Preem AB, Sweden's largest oil refiner, including an outright sale.
Corral Petroleum Holdings (CPH), which owns Preem, announced it will review strategic alternatives on the instruction of Al Amoudi, the Saudi billionaire who controls the company.
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, which may include (albeit not limited to) a sale of 100 percent of the shares in the Company, according to a statement released by Preem on October 05, 2023.
Born in Ethiopia in 1946, Al Amoudi has a major energy investment portfolio in Sweden managed from Stockholm. In 1994, he acquired Sweden's OK Petroleum (later re-named Preem Petroleum) through Swedish-registered Corral Petroleum AB. Following substantial further investment, Preem is now the largest fuel company in Sweden. Al Amoudi owns Preem through his controlling stake in CPH.
"The management is on a strong trajectory to deliver the most ambitious and critical plan in the Company’s history," said Jason Milazzo, chairman of the Board of Directors of CPH. "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."
Milazzo added 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.”
Preem is Sweden’s largest fuel company and has refineries accounting for 80% of Swedish and 40% of Nordic refining capacity. In 2022 it recorded sales of $14.6 billion and operating profits of $1.35 billion.
Experts say the review signals Al Amoudi's potential retreat from the Swedish energy sector and that Preem's scale could attract multibillion-dollar bids.
