Seaoil partners with Caltex Australia
CALTEX AUSTRALIA Petroleum Pty Ltd. is acquiring a 20% equity interest in Seaoil Philippines, Inc. in a deal that the local company said is intended to be a long-term partnership between the two independent oil players.
“We have long sought for a strategic partner to complement our capabilities and competitive advantage, and we are optimistic that Caltex Australia, whose values we share and whose operations is like ours in complexity, can help accelerate our growth,” said Seaoil Chairman Francis L. Yu in a statement.
Seaoil, which claims to be the country’s largest independent fuel player, quoted Caltex Australia Chief Executive Officer Julian Segal as saying the definitive agreement between the two “is an exciting growth opportunity” for his group.
“The fact that [Seaoil] has chosen to enter this partnership with us is a testament to the skills and capabilities we have been building over many years in our company. It also demonstrates the value that can be created from our position as an independent fuel supplier in the Asia-Pacific region,” he said.
The partnership calls for Caltex Australia to supply fuel to Seaoil through Ampol, its fuel sourcing and shipping business in Singapore. The Australian firm will also support Seaoil’s growth strategy to double its retail network and terminal storage capacity over the next five years.
“This partnership will also mean exciting times for our employees, our franchisees, distributors and customers as we leverage our partner’s scale and expertise to provide high quality, affordable and accessible fuels and lubricants to the fast growing Philippine market,” Mr. Yu said.
Caltex Australia is a 100% publicly owned company, listed on the Australian Stock Exchange under the symbol CTX. It does not share any common ownership with the local Caltex brand, which is owned by Chevron Philippines, Inc.
Seaoil said Caltex Australia’s market capitalization at $6.5 billion to $7 billion surpasses by more than 70% the combined figure of locally listed Pilipinas Shell Petroleum Corp. and Petron Corp. It also supplies a third of Australia’s transport fuel needs under the Caltex brand and has an extensive terminal and retail network, including 76 depots, 12 terminals operated by Caltex, five major and bunker pipelines, nine airport jet fuel supply sites, and over 1,900 retail sites.
In 2016, Caltex Australia sold over 16 billion liters of transport fuels and supply in excess of 70,000 commercial customers. It also has operations in New Zealand under the Gull brand and Singapore under the Ampol brand.
Seaoil has a 6% market share in the Philippines and is a pioneer in alternative fuels, including bioethanol gasoline and biodiesel. — Victor V. Saulon