Guam – Isla Petroleum & Energy has announced that it has sold a 25% stake to the Itochu Petroleum Co. (Singapore) PTE Ltd. Itochu is a wholly owned subsidiary of Itochu Corporation of Japan, one of Japan’s largest trading companies. IPC is a leading trader of fuels worldwide, with headquarters in Singapore. IP&E is a company formed by Prospector Investments Ltd., to acquire the assets of Shell in the North Pacific.
Shunsuke Oba, a director of IPC, said ” With IP&E, Itochu has found a partner who has unparalleled access to the island nations of the Pacific, a strong management team, and most importantly, an owner that shares the same management philosophy that we do. We both understand the importance of Sampo Yoshi ( Good for buyer, Good for seller, and Good for society ), which is the founding philosophy of our company. We hope to grow IP&E together in the decades ahead and work side by side with the Delgado family to further its development.”
Itochu, founded in 1858, has become one of the 250 largest corporations in the world according to Fortune magazine. It has diverse interests in Aerospace, Machinery, Mining, Petroleum, Energy, Food, and Chemicals. It was the first large Japanese company to do business in China, and continues to maintain a strong presence in the world’s fastest growing economy. Recently, it has ventured into Green Energy with General Electric to build one of the largest wind farms in the USA. Through its domestic subsidiary, Itochu Enex, it controls over 2000 gas stations in Japan. This year’s revenues for Itochu are forecasted to reach $40 billion USD, and the company expects to net $2 billion USD.
For IP&E, the equity infusion by IPC changes the potential growth trajectory of the company. Jose Ricardo Delgado, CEO, said “This transaction fortifies the company’s balance sheet to fund future growth plans, and gives IP&E the capability to deal with more volatile energy markets. While we were doing well on our own, the partnership with IPC opens up the possibilities of doing business across the entire Pacific, from the Philippines to the State of Hawaii. In this kind of business, it is comforting to be partnered with a company whose existence has spanned three centuries, and has the financial resources to weather even the most turbulent of times.”
Prospector Investments Limited, the parent company of IP&E, is a closely held company controlled by the Delgado family of the Philippines. It was initially formed to purchase telecom assets from Verizon, and has now branched into petroleum distribution through IP&E. In the last five years, it has rapidly grown by concluding transactions with Verizon, Sumitomo, Shell, and now Itochu.
IP&E is engaged in the petroleum retail, aviation, and commercial businesses in the islands of Micronesia. It runs its retail stations under the Shell brand, and is the sister company of IT&E, the largest wireless company in Micronesia, and the only company to offer 3G services in Guam, Saipan, Tinian, and Rota. Sumitomo Corporation of Japan, another large Japanese trading company, and also amongst the world’s 250 largest, is Prospector’s partner with a 25% stake in IT&E.
Mr. Delgado added, “IP&E is also proud to welcome the following newly appointed independent Board of Directors to the organization:
Joaquin P. L. G. Cook- Credit Officer and Board Member, Bank of Guam; Lee Weber- former publisher Pacific Daily News; Eli Santiago- former Vice President Shell retail sales and operations East; Attorney Avelino Cruz- former Director Petron Petroleum Philippines. Our independent Board of Directors will play an important role in our planning and business development in the months and years to come.”