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China’s ENN Energy purchases U.S. LNG business from Toshiba
CKN
2018/11/09 05:40:11
2,178

Nov 09, 2018 (China Knowledge) - Toshiba will be selling its U.S. liquefied natural gas (LNG) business to Chinese gas producer ENN Energy Holdings at the end of this fiscal year. Toshiba is expected to make a loss of USD 880 million from the deal.

ENN Energy Holdings is one of China’s largest private energy groups and is also listed on the Hong Kong Stock Exchange. The company supplies gas to cities, operates pipelines and engages in gas trading, selling nearly 19.6 billion cubic meters of natural gas annually.

The purchase of Toshiba’s business is part of ENN’s move to diversify its supply sources.

Before the announcement, Toshiba was expected to potentially lose up to USD 8.8 billion from its LNG business due to the highly volatile prices in the market. The Japanese conglomerate is trying to turn its business around by selling off its loss-making operations after it incurred massive losses from the bankruptcy of its U.S. nuclear power subsidiary Westinghouse Electric which forced Toshiba to sell its computer chip making business.

Toshiba netted USD 9.5 billion in net profits from April to September this year, however, operating profits fell by 80% to USD 60.7 million.

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