New filling stations in ORLEN Deutschalnd's network
ORLEN Deutschland, a subsidiary of PKN ORLEN, is purchasing 58 filling stations in Northern Germany from Deutsche BP AG. This transaction is yet another step in the implementation of ORLEN Deutschland’s consistent strategy of restructuring and development.
The transaction has been approved by the supervisory boards of PKN ORLEN and ORLEN Deutschland. It is a subject of approval from the German Anti-Trust Office which expected in the coming days. The deal is financed from ORLEN Deutschland’s assets supported by the company’s credit line.
The acquisition of 58 filling stations from the Aral branded BP retail net in Germany reinforces the consistent strategy of increasing ORLEN Deutschland’s value through restructuring and expansion of the retail network. In accordance with the strategy, the company is planning to acquire approximately 250 stations in northern Germany by 2009, securing a 10% share in that region’s market. The retail chain restructuring and expansion plan may also include potential asset divestment if an attractive offer is submitted.
- All strategic activities undertaken within the last 12 months have increased ORLEN Deutschland’s network attractiveness on German retail fuel market. The latest transaction further increases the business value -says Wojciech Heydel, Vice President of Sales on the PKN ORLEN Board.
Restructuring processes carried out so far as well as activities aimed at improving ORLEN Deutschland’s operational efficiency have resulted in Q3 2006 in an over 166% net profit increase compared to the same period last year. The network’s sales volume in Germany (ORLEN and STAR) rose by 3.1% over the period, despite a reduction of the number of stations (prior to the purchase of the BP sites).
- The transaction with BP improves our penetration of the very competitive German market. We found BP’s offer very attractive due to the location and profile of the stations now purchased by ORLEN Deutschland. The new stations will supplement our existing retail infrastructure in Germany. This transaction is also the best way to effectively increase the number of customers - said Krzysztof Żak, President of the Board of ORLEN Deutschland.
The acquired stations will be adjusted to required standards by the end of 2007. The stations are located in Germany's northern federal states - Schleswig Holstein, Hamburg, Bremen, Nordrhein-Westfalen, Hessen, Niedersachsen, Mecklenburg Vorpommern and Sachsen-Anhalt. Following acquisition ORLEN Deutschland will operate 530 sites in northern Germany.
PKN ORLEN
PKN ORLEN is the largest oil company in Central Europe with headquarters in Poland. In 3Q 2006 the company generated PLN 14. 88 billion in revenue, securing the leading position among all businesses in the new EU states. In December 2006 PKN ORLEN finalized the acquisition of the largest refinery in the Baltic states in Mazeikiu in Lithuania. PKN ORLEN stock is quoted in Warsaw and London. ORLEN’S capital group includes approximately 80 companies with around 24 000 employees.
Deutsche BP AG
Deutsche BP AG is the leader of the fuel and oil market in Germany. It operates under three brands: BP, Aral and Castrol. In 2005 the company generated annual revenues at the level of EUR 50bn. Deutsche BP AG operates with their Aral brand the largest German retail net and also the second largest refinery business with alltogether 6,000 employees.
ORLEN Deutschland
ORLEN Deutschland began operating in 2003 following the acquisition by PKN ORLEN of 494 filling stations in northern Germany. Under PKN ORLEN’S universal retail strategy applied to all markets, the German network operates two brands: premium (ORLEN) and economy (STAR)
