Houston, 8 January (Argus) — US independent refiner Tesoro will shut operations at its 96,500 b/d Hawaiian refinery in April and convert the facility to a terminal after failing to find a buyer over the past year.
Tesoro will incur a one-time charge of $1-$1.10 per share during the fourth quarter of 2012 as a consequence of converting the facility. But the divestment will free up between $300mn-$350mn in working capital by the end of this year, the company said.
“Upon conversion of the refinery to an import, storage and distribution terminal, Tesoro Hawaii believes third party utilization of the terminal and associated logistics will facilitate ongoing supplies of refined products,” Tesoro said.
It was not immediately clear what would happen to retail stations and other components of Tesoro's Hawaiian operations the company also put up for sale last January, but the company it will continue to try to sell the terminal once the facility is converted over.
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