Total Sells Trapil Stake for $290MM
Total revealed Monday that it has signed an agreement to sell a 30 percent interest in Société des Transports Pétroliers par Pipelines (Trapil) to Pisto SAS for $290 million (EUR 260 million).
Following the transaction, which is subject to French regulatory approvals, Total will remain a minority shareholder in the asset with an interest of 5.55 percent.
“The sale of Total’s interest in this infrastructure reflects its active portfolio management strategy,” Jean-Pierre Sbraire, chief financial officer of Total, said in a company statement.
“Rather than own infrastructure assets, the group’s aim is to hold contracts to use such infrastructure when needed to manage its industrial assets. This sale will help us achieve our target of divesting $5 billion in assets over the period 2019-2020,” he added.
Trapil was created by the French government in 1950 to build and operate a pipeline and auxiliary installations to transport refined petroleum products between the Basse-Seine and Paris regions. Trapil is Europe’s oldest, largest civilian pipeline network.
Last month, Total revealed that it had signed an agreement to divest several “non-core” UK assets to Petrogas Neo UK Ltd for $635 million.
Commenting on the deal back in July, Wood Mackenzie (WoodMac) said it was the latest example of majors divesting non-core UK assets to private equity-backed companies and independents expanding their presence in the UK upstream sector.
Total posted an adjusted net income of $2.89 billion in the second quarter of 2019, which marked a 19 percent drop from the same period last year. The company’s adjusted net income during the first half of the year stands at $5.65 billion, which is a 12 percent drop on the first half of 2018.
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