09 January 2013 03:54 [Source: ICIS news]
SINGAPORE (ICIS)--Tesoro Corp will cease operations at its Kapolei refinery in Hawaii in April to pave the way for the unit’s conversion into an import, storage and distribution terminal, the US firm said on Wednesday.
A one-time charge related to the conversion will be incurred by the company in the fourth quarter of 2012, while savings in capital expenditures will be generated in 2013, Tesoro said in a statement.
“The company also expects to realize between $300m (€228m) and $350m in cash by the end of 2013, driven by a reduction in working capital needs as a result of this conversion,” Tesoro said.
The company said that Tesoro Hawaii will maintain its existing distribution system to support marketing operations and fulfill its supply commitments while continuing to offer the terminal, distribution and retail assets for sale.
($1 = €0.76)
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