Swiss energy company VAROPreem is targeting more than a doubling of earnings by 2030 as refinery closures and geopolitical disruption tighten Europe’s fuel market.
The company is aiming for EBITDA exceeding twice its approximately $1 billion 2025 level.
VAROPreem supplies roughly 10% of Europe’s mobility-fuel demand across transport and marine markets in 41 countries and serves about 50,000 business customers.
The company was formed through the combination of Varo Energy and Swedish refiner Preem.
Its strategy reflects a European energy market moving in two directions simultaneously.
VAROPreem expects sustainable-energy businesses to generate more than half of earnings, but it also sees strong conventional-fuel demand from aviation, shipping and defense.
The company plans to increase its market share in selected aviation, marine and defense markets to more than 15% by 2030 from roughly 10% currently.
Biofuel production capacity is targeted to increase 20% from 1.3 million metric tons in 2025.
Europe’s shrinking refining system is central to the strategy.
Refinery closures have reduced regional fuel-production capacity while wars involving Iran and Russia have disrupted global energy flows.
Those conditions can strengthen margins for remaining refiners but also increase Europe’s dependence on imported fuels.
VAROPreem expects conventional and sustainable fuels to expand alongside one another rather than viewing the transition as an immediate replacement of fossil products.
Defense demand is particularly important because military aviation and other heavy applications remain dependent on conventional fuels.
The strategy therefore offers a useful snapshot of Europe’s changing energy system: decarbonization is continuing, but supply security is simultaneously increasing the economic value of existing refining capacity.
