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 quarter.
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