The group that bought out the Irish fuel business of the multinational Shell for €160 million less than two years ago has already clawed back half its money by selling off a clutch of filling stations in Dublin and Co Wicklow to property developers.
Topaz Energy says it has realised up to €80 million from the sale of eight or nine sites since it took control in late 2005 of 45 filling stations that Shell directly owned.
"We've generated about €70-€80 million from those sales. That was a big percentage of what we paid," Topaz chief executive Danny Murray says in an interview in The Irish Times today.
In addition to the filling stations and supply contracts with numerous Shell dealers, the multinational's distribution operation for industrial and residential oil users also went to Topaz in the €160 million deal.
Many of the filling stations that Topaz closed down were in south Dublin, the location of the greatest valuations in the property boom.
The sites sold included ones at Stillorgan, Rock Road, Clonskeagh, Churchtown, Ballinteer, Parnell Road and Greystones, Co Wicklow.
Mr Murray denies that such sales deprive motorists of fuel - "there are lots of stations around south Co Dublin" - and says some of the proceeds will be used to open new filling stations in Dublin and farther afield.
Topaz also used some of the proceeds to part-fund its acquisition of Statoil's Irish distribution business last year. Other Shell outlets might yet be sold, as well as certain Statoil sites.
"We will sell a station if it's worth considerably more than we can make at it going forward and we will use the money to invest in places where we can make money," he said.
Mr Murray takes issue with a Statoil dealership at Usher's Quay, Dublin, which has been charging almost €1.36 per litre for unleaded petrol while other Dublin dealers charge about €1.
"We think it's too high. I wouldn't buy petrol there. We don't own that station.
"It's one of the dealers, so it's an independent guy. To be fair to him, he's allowed to sell at whatever price he wants to sell. We cannot tell him what price to sell at. We don't agree with somebody charging that price."
Topaz is owned by businessman Neil O'Leary and others in his Ion Equity fund, as well as businessmen Denis O'Brien, Gerry Barrett and managers in the business.
