Tesoro Corp. is "looking at alternatives" for its Hawaii refinery, Chief Financial Officer Scott Spendlove said at an RBC conference in New York today, according to Bloomberg News.
Spendlove jokingly asked Holly Corp. Chief Executive Officer Matt Clifton, who was also at the conference, if he’d be interested in owning a refinery in Hawaii, Bloomberg reported. Holly Corp. is an independent refiner based in Dallas.
San Antonio-based Tesoro said last year it hoped to dramatically improve the profitability of its underperforming Hawaii refinery this year through a combination of measures, including a plan to charge Hawaiian Electric Co. more for the fuel oil it buys from Tesoro.
Tesoro also is looking to tap cheaper sources of crude oil "feedstocks" in the Pacific Basin and increase production of higher-value refined products in an effort to boost its net refining margins in Hawaii.
Tesoro operates Hawaii’s largest refinery and a network of gasoline stations in the state.
Chevron operates the only other major refinery in the state.