Shell to end forecourt operations in Ireland

mike65

One of the best known sights on the Irish road is to dissapear as Shell bail out of the fuel retailing business.

from "de paper"

The company said yesterday that it was in negotiations with a number of bidders for the stations. Although it would not release the names, it is believed that all the major forecourt operators, including Maxol, Esso and Statoil, are interested. No price has been given out by the company, but it could fetch more than €50 million.

Shell has around 50 petrol station in Ireland and services about 160 others. The business up for sale also includes its commercial fuels, lubricants and marine businesses. The company will retain its stake in the Corrib natural gas project and its aviation, bitumen and chemicals units.


Shell Ireland director Frank Bergin said he hopes the sale will be concluded in a few weeks.

“For reasons of commercial confidentiality, we are not able to disclose these parties, or to discuss this matter in more detail at this time. If we do decide to proceed with a sale, it would be Shell’s intention to sell the business as a going concern,” Dr Bergin said.

The company said it was selling off the retail arm to focus on its more profitable business units. Competition at the pumps has eroded any gains made by the oil firm from the soaring cost of fuel. The entry of supermarket giant Tesco into the market has driven margins down further.

I wonder if Tesco might see an opppotunity.

Mike.

ps I read somewhere that the number of forecourts has dropped by 50% in the last 30 years.

Capt'n Midnight

So they are following BP - remember Statoil took over those stations.

Would this have anything to do with Shell admitting that they didn't have as much oil as they used to ?

jlang

More likely Shell admitting that they're better at the oil exploration business than they are at the neighbourhood shop business.

astec123

Or maybe it has to do with the now insane prices on the forecourts, Texaco in my town was 99.9 on monday last week tuesday was 101.9 in the morning and 102.9 that evening now we are at 105.9 since wednesday.

Alun

jlang wrote:

More likely Shell admitting that they're better at the oil exploration business than they are at the neighbourhood shop business.

But they're only doing that in Ireland aren't they, not the UK or the rest of Europe. Probably just too small a market to bother with.

Thomond Pk

Petrol stations with less than a 20,000 litres per week turnover are an endangered species, Shell started their disposal programme last year and one would imagine that this will accelerate. Shell also moved commital proceedings against 5 small Mayo farmers today fronted by a leading legal practice. As Harney said shop around.........

Capt'n Midnight

jlang wrote:

More likely Shell admitting that they're better at the oil exploration business than they are at the neighbourhood shop business.

they seem to have mislaid several billion barrels of oil http://news.ft.com/cms/s/5db1c8c0-7652-11d9-8833-00000e2511c8.html

The Anglo-Dutch energy group has now been forced to cut its proved oil and gas reserves by almost a third in 12 months. The news overshadowed its reporting yesterday of record net income of $18.5bn (£9.82bn) in 2004, on the back of high crude prices.

jlang

Anyway, I've just bought the most expensive petrol I've ever bought. 101.9 in Tesco! First time I've had to pay over EUR1.00/litre.

daz42C

jlang wrote:

First time I've had to pay over EUR1.00/litre.

Won't be the last time either!

JackieChan

and to think that I was paying 95.9 about a month ago in Tescos(Tullamore).Albeit this was with a 5c/litre discount. Its now 99.9. Nearest petrol station to me charges 106.9!!! I try and buy once a week in Tescos.
I'd love to know the margin on a litre of petrol

DubTony

JackieChan wrote:

I'd love to know the margin on a litre of petrol

Retailers margin is about 5 cents per litre. There are all sorts of rebates and bonuses worked later, but "right now" profit for an independent retailer it's about 5c. Tough business, hence the reduction in the number of service stations over the years.

Lennoxschips

Going rate here in Holland is roughly EUR 1.40.

But then the Dutch government does have at least half a public transportaton network in place.

drdre

yeah prices are set to increase rapidly. esso are also selling some of there petrol stations it was in the paper today that bidding is starting soon.theres not much money in petrol thats why esso is opening up a on the run facility in most of there stations.

Thomond Pk

Petrol is a bit like cigerettes in a retail sense in that due to government tax levels the margins are pretty much non-existant. That is why so many older stations are closing and where sites allow extened shops are being put in others or put another way if your local station doesn't have a standard spar sized format it probably will close in the next couple of years.

Shell were much slower movers than statoil who are I heard trying to open off-licences at most of their compound type stations. Then again Shell were never that clever if one looks at what is going on in Mayo at the moment especially given their Ogoni legacy a situation that is still ongoing.

DubTony

Thomond Pk wrote:

Petrol is a bit like cigerettes in a retail sense in that due to government tax levels the margins are pretty much non-existant. That is why so many older stations are closing and where sites allow extened shops are being put in others or put another way if your local station doesn't have a standard spar sized format it probably will close in the next couple of years.

Isn't there a legal cap on the size that a shop can be when the main purpose of the business is to sell petrol. Texaco Lucan and Texaco Spawell are perfect examples of small shops with huge petrol selling space. Outside Dublin it's not unusual to see 2 to 3000 sq.ft. shops with a petrol station. I think this is because the shop is the main business and the petrol is a sort of added service.

Shell were much slower movers than statoil who are I heard trying to open off-licences at most of their compound type stations. Then again Shell were never that clever if one looks at what is going on in Mayo at the moment especially given their Ogoni legacy a situation that is still ongoing.

Shell were always crap in the retail sector. They spent more time pushing their "superfuels" than actually using the sites to try to make money. This latest idea of selling booze at every petrol station is shoving up the price of an off-licence no end. Heard one from a grocery store in the country went for €175,000 last month. That's just transferring the licence and has nothing to do with the shop.

Victor

http://www.rte.ie/business/2005/0715/shell.html

Ion group buys Shell businesses
July 15, 2005 12:35

A consortium led by venture capital group Ion Equity has bought Shell's retail and commercial business in the Republic of Ireland. The price paid was not disclosed. The new business will continue to operate in the same way and will still be associated with the Shell brand.

Irish Shell owns six oil importation facilities in Dublin, Cork, Limerick, Galway, Derry and Greenore, 35 local distribution depots and 55 retail service stations. It also supplies 105 independently-owned service stations. The business is thought to have a turnover of around €1 billion a year.

Ion chief executive Neil O'Leary will be the interim chairman of Topaz, the company formed to make the acquisition, while former Emo Oil managing director Danny Murray will become chief executive.

Mr O'Leary said the new company would be one of Ireland's larger private businesses and he was confident it would continue as a profitable and growing enterprise.

Danno

Shell always provided the best price and best fuel IMO.

I look on it in two ways - miles per tank and cent per litre. Shell usually comes out tops.

I.E.
At the moment Shell is 105.9c per litre. A fill delivers 340-380 miles.
My local Esso is 112.9c per litre. A fill delivers 300-330 miles
My local Texaco is 112.5c per litre. A fill delivers 330-360 miles.

Guess where I buy

John R

Danno wrote:

My local Esso is 112.9c per litre. A fill delivers 300-330 miles
My local Texaco is 112.5c per litre. A fill delivers 330-360 miles.

That's a big mileage difference for 0.4c/litre.

loyatemu

on my way home on friday Sinn Fein were picketing outside Statoil in Deansgrange to "free the pipeline protestors"
anyone know why? - are Statoil linked to shell in some way or are the shinners just a bit confused.

egan007

loyatemu wrote:

on my way home on friday Sinn Fein were picketing outside Statoil in Deansgrange to "free the pipeline protestors"
anyone know why? - are Statoil linked to shell in some way or are the shinners just a bit confused.

Statoil have a share in the corrib pipeline