Eni Selling Off Eastern European Refineries

Eni selling refining capacity to increase profits

Eni selling refining capacity to increase profits

In a move designed to boost profitability, Italian multinational oil and gas company Eni SpA, signed a number of agreements to sell several refining and marketing businesses in Eastern Europe. Hungary’s MOL Group will be purchasing Eni’s 32.5 percent share in Ceska Rafinerska AS (CRC), a refining company located in the Czech Republic. The sale will reduce Eni’s overall refining capacity by 7 percent.

Over the past three years several capacity reductions in Eni’s Italian refining business added a 13 percent reduction to their international refining capacity in 2013, Eni stated. They added that during the coming three years they are planning a further reduction in refining capacity of 22 percent. That would result in an overall one third reduction in refining capacity since 2012.

Additional agreements have been signed to sell to MOL Group other refining and marketing subsidiaries in Czech Republic, Slovakia and Romania. Sales will not be finalized until the respective antitrust authorities in each country give their approval.

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