By BEN LEFEBVRE
Tesoro Corp. will stop producing fuel at its refinery in Kapolei, Hawaii, and
convert the facility to an import, storage and distribution
terminal, the company said Tuesday.
Tesoro had been trying to sell the 94,000-bpd refinery since January 2012 because
of eroding profit margins.
The conversion to an import facility, expected to occur in
April, will allow Tesoro to cut costs related to processing
fuel there while still allowing the company to distribute fuel
in the state.
Tesoro said it expects the conversion to result in a
one-time charge of as much as $1.10/share in its fourth
The conversion is expected to add as much as $350 million in
cash to the company's bottom line by the end of 2013 as working
capital costs decrease.
Dow Jones Newswires