Last Updated on August 22, 2025
In a dramatic turn of events, one of the United Kingdom’s last operational oil refineries — Lindsey refinery, operated by Prax—shut down abruptly in June 2025, sending shockwaves through the energy sector. The closure followed the discovery of serious financial irregularities tied to a £783 million credit facility arranged by HSBC. The loan, backed by projected fuel sales, was meant to support not just the refinery but the entire Prax Group. When the financing was suddenly terminated, the company was unable to pay its primary supplier, Glencore, which then seized control of its crude and refined products—effectively halting operations.
The collapse was compounded by the disappearance of Prax’s owner, Winston Soosaipillai, also known as Sanjiv Kumar, who had previously assured UK officials of the company’s stability. Tax authorities are now seeking £70 million from Prax Petroleum, while the group’s total liabilities may exceed £250 million. Creditors include Shell, hundreds of suppliers, and 171 employees owed millions in unpaid wages. Administrators are now liquidating assets, including North Sea oil wells, tankers, and petrol stations once tied to the Lindsey refinery network.
This sudden implosion of a major energy player offers a sobering reminder of the risks tied to opaque financing and over-leveraged acquisitions. But for investors, it’s also a moment to reassess how to build a portfolio that can withstand shocks like these. The Lindsey refinery story, in particular, shows how a single high-profile collapse can ripple through suppliers, creditors, and even national energy security.
What Investors Can Learn
The Prax Lindsey case underscores the importance of transparency, governance, and financial discipline in the energy sector. While oil and gas assets can be lucrative, they’re also capital-intensive and vulnerable to operational disruptions. Investors should be cautious of companies that rely heavily on future revenue projections to secure financing—especially when those projections span multiple entities.
To navigate this complex landscape, diversification and debt awareness are key. Here’s how to build a portfolio that balances traditional energy stability with renewable growth.
Sample Energy Portfolio for Long-Term Resilience
| Company | Sector | Debt-to-Equity Ratio | Dividend Yield | Why It’s Included |
|---|---|---|---|---|
| Chevron (CVX) | Oil & Gas | ~12.4% | ~4.3% | Strong cash flow, low debt, reliable dividends |
| ExxonMobil (XOM) | Oil & Gas | ~17.5% | ~3.8% | Global scale, high liquidity, stable returns |
| Devon Energy (DVN) | Oil & Gas | ~24% | Variable | Flexible dividend model, disciplined spending |
| Brookfield Renewable (BEP) | Renewables | ~0.8 | ~5.9% | Long-term contracts, global footprint |
| Suzlon Energy | Wind Energy | ~0.05 | N/A | Major debt reduction, turnaround potential |
| Inox Green Energy | Wind Services | ~0.09 | N/A | Stable service model, low capital risk |
This mix offers exposure to reliable dividend payers, emerging clean energy leaders, and companies with strong balance sheets. But for those who prefer a hands-off approach, ETFs can provide diversified access to these sectors.
ETF Picks for Energy Diversification
- Vanguard Energy ETF (VDE) and Energy Select Sector SPDR Fund (XLE) include Chevron and ExxonMobil, offering broad exposure to U.S. oil majors with low expense ratios.
- iShares Global Clean Energy ETF (ICLN) and VanEck Green Infrastructure ETF (RNEW) feature Brookfield Renewable and Suzlon Energy, ideal for tapping into the global clean energy transition.
- For emerging market exposure, WisdomTree India Earnings Fund (EPI) and Goldman Sachs India Equity ETF (GIND) include Suzlon and offer access to high-growth Indian equities.
Platforms to Use for Buying the Energy Stocks and ETFs.
From the EU: Brokers like DEGIRO, Interactive Brokers, and Trade Republic offer access to U.S.-listed stocks and ETFs, including those in the semiconductor and AI sectors.
From the US: Platforms such as Fidelity, Charles Schwab, and Robinhood allow commission-free trading of these assets, with tools for tracking performance and sector exposure.
Final Thoughts
The downfall of the Prax Lindsey refinery is more than a corporate misstep—it’s a cautionary tale for investors chasing high returns in complex, debt-heavy structures. By focusing on companies with strong fundamentals, low debt, and transparent governance, investors can build portfolios that not only survive market turbulence but thrive in the long run.
Whether you’re planning for retirement or just starting out, the energy sector offers both risk and opportunity. The key is knowing where to look—and what to avoid.
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Disclaimer: This content is for informational and educational purposes only and does not constitute financial or investment advice. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.