OMV to sell Turkish operation

22.02.16. Austria’s OMV is selling its Turkish subsidiary Petrol Ofisi.
The move looks to be driven by OMV’s need to raise cash in the low oil price environment which could last for an extended period.
The Austrian group is choosing advisors to support the potential transaction and the structuring of the process.
Petrol Ofisi is a leading player in the Turkish fuel distribution industry. With 1,785 fuel stations the company operates the largest retail station network in the country and has the largest fuel storage capacity (1 million cbm) with an associated logistics business. The company is also the biggest distributor of lubricants in Turkey.
However, OMV’s business model throughout its network is based on integrating upstream and downstream activities closely connected through a refinery, which it has not been able to replicate in Turkey.
Announcing its latest results, OMV said Turkey is the single largest growth market for oil products in Europe, and, following successful contract renewals, now was “the right time to exit a healthy asset” to generate cash and strengthen its balance sheet.