Cabinet reviewing Petcom transaction
Avia Collinder, Business Reporter
The Development Bank of Jamaica (DBJ) says it is awaiting Cabinet approval of the transaction structure for the proposed divestment of Petroleum Company of Jamaica - Petcom - before moving to the next stage of inviting bids for the marketing company.
"The Petcom privatisation opportunity is expected to be issued to the market in February 2015, once Cabinet approval is received for the transaction structure and the bidding documents have been finalised by the Petcom Enterprise Team," the bank said.
"The DBJ has received several expressions of interest from local and international entities regarding the opportunity."
GB Energy Jamaica, the operator of the local Texaco network, is among the interested parties. CEO Mauricio Pulido told Wednesday Business that he was awaiting the release of the information memorandum on Petcom and the official invitation to bid to properly assess the opportunity.
Petcom owns and operates 28 service stations and 14 liquefied petroleum gas filling plants.
The company's sales have topped $11 billion in each of the last two years, according to finance ministry disclosures on public bodies.
It is estimated to have made a profit of $88 million at year end March 2014, and is projected to nearly triple that performance to more than $230 million net profit this year.
The petroleum marketing company's net worth was also estimated at just under $750 million, and its assets at $1.9 billion, of which $828 million are fixed assets.
The company seems also to be reducing its debt, which fell from $300 million to $238 million at March 2014, and is projected to decline to $175 million by March 2015, according to the finance ministry data.