Mon 8 Dec 2014, 15:46 GMT

World Fuel Services sells interests in crude oil JVs


Subsidiary Petroleum Transport Solutions sells its crude oil joint venture interests to Dakota Plains Holdings.



World Fuel Services Corporation, a company principally engaged in the marketing, sale and distribution of aviation, marine and land fuel and related products and services, has today confirmed that its wholly owned subsidiary, Petroleum Transport Solutions, LLC (PTS), has sold its crude oil joint venture interests, which includes the Pioneer Terminal in New Town, North Dakota, to its joint venture partner Dakota Plains Holdings, Inc. for a base sales price of $43 million.

In addition to the base sales price, PTS is to receive future contingent payments equal to $0.225 per barrel for crude oil received at the Pioneer Terminal, up to a limit of 80,000 barrels per day up until December 2026, World Fuel Services said.

"Despite exiting these joint ventures, we will continue to offer tailored solutions to producers and consumers in the growing North American crude oil marketplace," said Michael J. Kasbar, chairman and chief executive officer.

According to World Fuel Services, the transaction will result in a one-time after-tax gain of approximately $11 million, or $0.15 per diluted share, which will be included in the company’s 2014 fourth quarter results.

Please click here to view a U.S. Securities and Exchange Commission (SEC) filing from Dakota Plains Holdings regarding the agreement.

A statement from Dakota Plains Holdings can be viewed by clicking here.


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