Italy's Saras reports drop in 2023 core profit of refined products ahead of Vitol's takeover
(Reuters) - Saras reported a 41% fall in its full-year comparable core earnings due partly to weaker profitability of refined products, as global commodity trader Vitol prepares to take over the Italian oil refiner later this year.
Saras, which is controlled by Italy's Moratti family, said its comparable earnings before interest, taxes, depreciation and amortization (EBITDA) fell to 669.7 million euros ($730 million) in 2023.
The company cited a drop in the "diesel crack", a metric representing the profitability of refined products, to an average of $26.4 per barrel from $37.7 per barrel in 2022, and also a weaker dollar versus the euro.
Saras Group - founded 62 years ago by the father of its current chairman Massimo Moratti - is the owner of the Sarroch plant in Sardinia, which is the single biggest refinery in the Mediterranean with a capacity of 300,000 barrels per day.
The Moratti family agreed in February to sell 35% of the company to Vitol at 1.75 euros per share, valuing the entire group 1.7 billion euros.
Upon closing of the deal, the entire stake owned by the Moratti family in Saras will be transferred to Vitol, triggering a mandatory tender offer for the outstanding share capital of the group, with the aim to delist it.
Moratti said on Friday that the decision to sell control to Vitol "was a very difficult and emotional choice but taken for the good of the group".
"Vitol... will be able to make Saras grow further, bringing great financial and commercial strength, as well as international professional expertise," Saras chairman added.
The Italian government will review the transaction under its so-called "golden power" vetting rules for industries deemed of strategic importance such as banking, energy, telecoms and health.
Rome will seek commitments from Vitol on jobs, investments and continuity of supplies when reviewing the commodity trader's plan to take over the refiner, two sources told Reuters last month.
On Friday Saras said its net financial position at the end of 2023 was positive at 167 million euros.
The group will hold a shareholders meeting on April 29 to approve the payment of a dividend equal to 0.15 euros per share.
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