The Board of Spain’s Compania Logistica de Hidrocarburos (CLH) has approved the update of its Strategic Plan 2012-2016, including a projection to 2018.
The update is in order to adapt key figures in view of the new scenario of economic growth in Spain and the internationalisation of the company’s activities. CLH recently acquired GPSS (Government Pipeline and Storage System), the most important pipeline network in the United Kingdom, and it is continuing with a project for the construction of logistics infrastructure in Oman. The updated plan continues to focus on efficiency improvements, with the objective of increasing the value of the company and conserving its long-term competitive position.
According to the new forecasts made by CLH, demand in Spain for clean oil products (gasoline, kerosene and diesel fuel) will see an average annual growth of 2.1 percent over the next few years and deliveries of products from CLH facilities to the Spanish market will experience a similar growth rate, placing the volume of deliveries in 2018 at over 43.8 million cbm.
In view of this growing demand outlook, the company forecasts that the operating income of the CLH Group for 2012-2016 will reach €3,128 million. During the two years to which the strategic plan is extended – 2017 and 2018 – it is forecast that operating income will be in the region of €700 million a year.
At the same time, the company will continue to implement the investment programme outlined in the strategic plan 2012-2016, which will reach €500 million, of which close to €300 million will be for investments in Spain, and the rest for the projects in Oman and the UK. For the additional two years investment will amount to €140 million, most of it in Spain.