Vitol, Carlyle to list oil downstream venture Varo in Amsterdam

Oil trader Vitol and private equity giant Carlyle will list their European downstream venture Varo Energy in Amsterdam this year. (REUTERS)
Updated 20 March 2018
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Vitol, Carlyle to list oil downstream venture Varo in Amsterdam

LONDON: Oil trader Vitol and private equity giant Carlyle will list their European downstream venture Varo Energy in Amsterdam this year, looking to raise funds to expand while luring investors with a hefty dividend pledge.
Varo, in which Carlyle, Vitol and Dutch firm Reggeborgh Invest each have 33.3 percent stakes, said in a statement on Monday that the three shareholders will sell a combined 30-40 percent of existing shares on Euronext on a pro-rata basis.
Varo, which saw underlying earnings rise to $371 million last year from $328 million in 2016, did not say how much it hoped to raise in the initial public offering. Banking sources have said the firm could be valued at €2 billion ($2.5 billion).
The company, which owns two refineries in Switzerland and Germany, and storage, blending and distribution assets in those two countries plus Benelux and France, said it intends to pay out a dividend of 30-50 percent of its profit after tax.
“We are convinced of the continued demand for fuels, including renewable fuels by our customers and believe we are well positioned to meet this demand. We are ready for the next stage of Varo’s development and growth,” CEO Roger Brown said in a statement.
Varo said it aimed to achieve over the medium term high single-digit growth in underlying earnings, primarily through organic growth and maintain a return on capital (ROACE) of more than 15 percent.
Besides paying 30-50 percent of profit to the shareholders, the firms wants to invest 30–50 percent of its free cashflow in organic and inorganic growth and use 20 percent of its free cashflow to meet its debt service requirements.
The company had revenues of $13.4 billion in 2017, up from $10.5 billion in 2016 and a net debt to earnings ratio of 0.6 times at the end of 2017.
It controls the two refineries with a total processing capacity of 165,000 barrels per day, a bitumen plant, 144 fuel distribution outlets, 232 retail outlets and 12 river bunker stations.


What We Are Reading Today: Yale Needs Women by Anne Gardiner Perkins

Updated 21 September 2019

What We Are Reading Today: Yale Needs Women by Anne Gardiner Perkins

  • The book is a historical novel based on the first females that were accepted and lived on campus at Yale

Yale Needs Women by Anne Gardiner Perkins is a historical novel based on the first females that were accepted and lived on campus at Yale starting the summer term of 1969.

“This is an academic work although written in a very accessible style for the average reader,” said a review in goodreads.com.

It said the book “started as a graduate paper and morphed into a dissertation over time.”

The review also said Perkins “really allows readers into the lives of several of the students and one administrator in particular.”

It said the author “straddles the line nicely between fitting in the comprehensive detailed research she managed and making it interesting enough that someone mighty think it was a novel.”

Perkins grew up in Baltimore and attended Yale University, where she earned her BA in history and was the first woman editor-in-chief of the Yale Daily News. 

She has spent her life in education, from urban high school teacher to elected school committee member. 

She has presented papers on higher education at leading conferences.

Although Yale Needs Women’s principal focus is on, well, women at Yale, Perkins also weaves in a lot of events that were also happening at the time and impacted Yale life, such at the Black Panther movement and the Vietnam War.