2013-01-08 23:30:34 -
SAN ANTONIO, TX - January 08, 2013 - Tesoro Corporation (NYSE: TSO) today
announced that it will cease refining operations at its Kapolei refinery during
April of this year, and begin the process of converting the refinery to an
import, storage and distribution terminal. Tesoro Hawaii is committed to
maintaining its focus on safe and environmentally sound operations during the
shutdown and conversion process.
Tesoro Hawaii will maintain the existing distribution system to support
marketing operations and fulfill its supply commitments while continuing to
offer the terminal, distribution and retail assets for sale. 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 expects to report one-time charges in the
fourth quarter 2012 related to
the conversion of the refinery to a terminal, including charges for asset
impairment and asset retirement obligations. The one-time charges are estimated
to be $1.00 - $1.10 per share. The Company also expects to realize between $300
million and $350 million in cash by the end of 2013, driven by a reduction in
working capital needs as a result of this conversion.
About Tesoro
Tesoro Corporation, a Fortune 150 company, is an independent refiner and
marketer of petroleum products. Tesoro, through its subsidiaries, operates
seven refineries in the western United States with a combined capacity of
approximately 675,000 barrels per day. Tesoro's retail-marketing system
includes nearly 1,390 branded retail stations, of which over 595 are company
operated under the Tesoro®, Shell® and USA Gasoline(TM) brands.
This press release contains certain statements that are "forward-looking"
statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934 concerning the ongoing supply
of refined products, the one-time accounting charges related to the conversion
and expectations for cash generated from the reduction of working capital. For
more information concerning factors that could affect these statements see our
annual report on Form 10-K and quarterly reports on Form 10-Q, filed with the
Securities and Exchange Commission. We undertake no obligation to publicly
release the result of any revisions to any such forward-looking statements that
may be made to reflect events or circumstances that occur, or which we become
aware of, after the date hereof.
CONTACTS:
INVESTOR RELATIONS
Louie Rubiola
210-626-4355
MEDIA
Tesoro Media Line
210-626-7702
media@tsocorp.com
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Tesoro Corporation via Thomson Reuters ONE
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