Our landblog reports:
Tesoro Corp. will shut down its Oahu refinery, multiple news sources are reporting.
The company announced last year that it was putting its refinery — one of two in Hawaii — up for sale. But it appears that Tesoro could not find a buyer.
The refinery employs about 240 workers.
Hawaii’s two refineries have faced a difficult future as the state converts to more renewables for electricity generation.
During a December investor conference, the company said that it was in the process of disposing of its business in Hawaii, which would boost its return on capital.
Louie Rubiola, director of investor relations for Tesoro, told investors the following, according to a transcript of the conference:
And just to refresh everyone’s memory about what we’ve talked about in Hawaii, one of the values that we create in Hawaii and a big part of our decision to divest of that business was its significant amount of working capital we tied up in the business, somewhere north of $300 million, that as we complete the process to divest of the Hawaiian business, we’ll free up that working capital and that’s the really the value that’s created there. …