Terpel announced the sale of assets to Primax in Peru and Ecuador for US$64 million

Terpel announced the sale of assets to Primax in Peru and Ecuador for US$64 million
Terpel announced the sale of assets to Primax in Peru and Ecuador for US$64 million

12:59 PM

Terpel announced the sale of several assets it owns in Peru and Ecuador, markets in which at the end of 2023 it reported a generation of economic value in the order of $5.2 billion. As reported to the marketthis is an operation in which Primax will acquire the businesses in exchange for US$64 million.

However, Terpel clarified that it will retain a part of the operation to concentrate on the lines that can generate more value.

What is sold

The multilatina reported that in Peru the sale corresponds to all service stations and convenience stores owned and/or operated by Terpel Perú SAC and Terpel Comercial del Perú SRL, subsidiaries of Terpel.

This corresponds to the operations of nine company-owned stations, 17 leased stations operated by the company, eight joint ventures and nine convenience stores.

The report for last year’s fiscal year indicates that in that country the sale of 113.7 million gallons was recorded and a profit of $59,699 million was achieved. The market share in both segments was 0.65% and 6.31%, respectively.

The company emphasized that it will continue to market Mobil lubricants and aviation fuels. It will also continue with the wholesale sale of liquid fuels and CNG for mass transportation in Lima.

The aircraft fuel storage and dispatch operation is located at the Jorge Chávez International Airport, in the Peruvian capital. And there, with a cut-off to 2023, the market share was 7.18%.

For the distribution of lubricants, Terpel registers 18,788 points of sale and in this line it has a 36% participation.

The business of Ecuador

In Ecuador the deal is for the disposal of 100% of the shareholding that Organization Terpel SA holds directly or indirectly in the company Terpel Comercial Ecuador CIA Ltda.

This is a subsidiary of Terpel domiciled in Ecuador dedicated to the business of 20 owned service stations, 20 non-owned stations operated by the company, 68 affiliated stations and 14 convenience stores.

Last year, 343 million gallons were sold in that country and an Ebitda of $31,663 million was reached, but it recorded losses of around $9,847 million. However, in this market Terpel will also keep the lubricants business, where it reports a market share that exceeds 10%.

“This decision responds to Terpel’s interest in concentrating on businesses with the greatest potential for growth and profitability in each of the markets where it operates,” the company said.

And he added that “to reach their definitive materialization, the above operations are subject to the approval of the competent authorities of each country. While the corresponding authorizations are issued, the control and operation of the business will continue to be the responsibility of Terpel.”

“The business restructuring process, if carried out, would be completed immediately upon obtaining approvals from the competent authorities. In Peru, with the signing of public documents, through which the company’s assets are transferred. And in Ecuador, with the subscription and registration of the transfer of the company’s shares,” Terpel detailed in a statement in the relevant information of the Financial Superintendence.

This was Terpel’s performance in the first quarter

Revenues amounted to $8.8 billion and showed a 3% annual decrease, mainly explained by lower volumes. Colombia, which participated with 75%, grew 9%. Panama, with a 10% share of consolidated income, decreased 32% compared to the first quarter of the previous year. Peru and Ecuador, participating with 12%, had a decrease of 21% and 27% respectively compared to.

The income of the Dominican Republic, with a share of 3% of the total, showed a decrease of 19% compared to the same period in 2023.

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