A long-term investor
Wendel is a hands-on investor and shareholder that assists sector-leading companies in their long-term development. Wendel's business model combines the entrepreneurial passion born of a long family tradition with a culture of performance and accountability.
Oranje-Nassau
International private equity investments
50 production fields worldwide, mainly in the North Sea• Output of about 18,400 barrels of oil equivalent per day.
| (in millions of euros) | 2007 | 2008 | Δ |
| Average oil price (€/bbl.) | 52.90 | 66.55 | +26% |
| Production (MBOE) | 5.4 | 6.7 | +24% |
| Net sales | 243 | 374 | +54% |
| Net income from business sectors(1) | 59 | 78 | +32% |
| Net financial debt | -21 | - | - |
(1) Defined on the “Key Figures” page and excluding companies
held through Oranje-Nassau.
How Wendel is involved:
Supervisory Board:
Frédéric Lemoine (Chairman),
Olivier Chambriard,
Jean-Michel Ropert (members)
Why we invested
Wendel became the owner of Oranje-Nassau in 1908. Originally, this company operated coal mines in the Limburg province that supplied blast furnaces. In the early 1970s, coal mines were gradually closed in the Netherlands, and Oranje-Nassau began its oil and gas drilling and production activities in the North Sea. Production began in 1977. Since 1987, with the acquisition of oilfields in the North Sea and several North African and Middle Eastern countries, Oranje-Nassau has become an international player in oil & gas production. The Group now possesses acknowledged know-how in acquiring active oil fields.
How Wendel has helped Oranje-Nassau to expand
The Group’s reconversion occurred after the Netherlands nationalized its coal mines. After the mines were closed, the Group invested in acquiring oil fields and in real estate. In 2007, the real-estate division was sold in a favorable environment. Oranje-Nassau then refocused on its core business of acquiring active oil fields and turned away from the riskier activity of production. Since 1987 it has acquired or sold more than 40 oil fields, mainly in the North Sea, the Middle East and Africa, making Oranje-Nassau a respected player in the sector.
Active acquisitions to continue, along with adjustments in production capacities in a recessionary environment
The Energy sector, which is active in oil & gas development and production, got a boost in 2008 when oil prices were driven up by growing global demand, notably from China and India. The benchmark Brent price averaged $97.85 in 2008, up 35% from the $72.45 average price for 2007. When converted into euros, the increase was 26%.
Oranje-Nassau’ net sales came to €374 million, vs. €243 million in 2007. Oil and gas output rose 24% from the previous year, to 6.7 million barrels. This increase is due to the full-year contribution of the Buzzard oilfield in the UK part of the continental shelf, as well as the contribution of the Tchatamba complex, off the coast of Gabon. For 2008, exploration and development investments in existing fields came to €26 million, which was comparable to 2007 (€28 million).
The sale of half of Oranje-Nassau’s 18.2% interest in the Janice and James oilfields, located in the UK part of the continental shelf, was successfully concluded. Oranje-Nassau also sold more than 40% of its interest in the Rijn oilfield, on the Dutch part of the continental shelf. Net income rose 32% to €78 million.
In early 2009 it became apparent that expanding Oranje-Nassau’s oil activities required a much larger international deployment in new regions (Africa, Asia, Latin America), which would require significant additional financial and human resources.
Outlook
Since 1908, Oranje-Nassau has been a platform for the group’s international development and has run several businesses successively (coal, real-estate and oil). After the sale of its energy assets, currently in progress, it will remain a strategic platform for Wendel’s international development.
