Tesoro announces $75M sale of Hawaii refinery
HONOLULU (AP) — Tesoro Corp. said Monday it has agreed to sell its refining operations in Hawaii to Par Petroleum Corp. for $75 million plus the market value of its working capital.
The San Antonio, Texas-based company said Par Petroleum agreed to continue running Tesoro Hawaii LLC as a refining, logistics and retail operation.
The deal expected to close in the third quarter comes after Tesoro told Hawaii state officials in May that it would lay off 165 workers at the Kapolei refinery. Those layoffs were set to begin this week after initial notices were sent out earlier this month.
Tesoro said it expects the market value of its working capital to be between $225 million and $275 million.
“While the Hawaii operations do not align with our strategic focus, we believe they offer a great opportunity for Par Petroleum,” Tesoro CEO Greg Goff said in a statement.
Hawaii U.S. Rep. Colleen Hanabusa, D-Hawaii, praised the sale and said she hopes it will help prevent job losses.
“I look forward to learning more about Par Petroleum and their intentions, practices and philosophy,” Hanabusa said. “My hope is that they will grow to be a part of our community.”
Democratic U.S. Sen. Brian Schatz says the operation is a critical part of Hawaii’s economy.
“This will help with the availability of jet fuel, diesel fuel and other refined products,” Schatz said.
Par Petroleum is based in Houston, and has several energy-related assets. Its stock rose 4 cents, or 2.7 percent, to $1.55 on Monday.
Par Petroleum said its board unanimously approved the purchase, and that the company’s retail gas stations would remain under the Tesoro brand.
“This is a great fit for Par Petroleum and we are pleased to make a long-term investment in Hawaii’s economy,” Par Petrolem CEO Will Monteleone said.
The company said the deal would be financed by issuing $200 million in common stock and other funding.
Tesoro’s stock rose 45 cents, less than 1 percent, to $57.61 on Monday.
Dead teen found near Sandy Beach was intoxicated
HONOLULU (AP) — The Honolulu medical examiner’s office says a teen found near Sandy Beach died from head injuries caused by blunt-force trauma.
The medical examiner’s office on Monday also said that Boydshiro Maycry’s fatal injuries were from involvement of a moving vehicle.
The Honolulu Star-Advertiser reports the 17-year-old also had a blood alcohol concentration level of 0.221, nearly three times the legal threshold for drunken driving.
When he was found in April, police said it appeared he fell from a vehicle and police were investigating whether he was riding on the hood.
Honolulu flight to SFO turns around after problem
HONOLULU (AP) — The Federal Aviation Administration says a United Airlines flight bound for San Francisco from Honolulu turned around because of an unspecified electrical problem.
FAA spokesman Ian Gregor said Monday the Boeing 737 airplane landed without incident.
The redeye flight took off from Hawaii on Sunday night just before midnight and was scheduled to land in San Francisco on Monday morning.
Gregor says the FAA is working with United to determine the cause of the problem.
United Airlines spokeswoman Mary Clark says the flight was cancelled because of flight time restrictions on its flight attendants.
Clark says the plane is expected to return to service Monday afternoon.
Clark says the 93 passengers were accommodated on other airlines.
Bill would lift cap on donations deduction
HONOLULU (AP) — A bill pending before Gov. Neil Abercrombie would allow wealthy donors to claim tax deductions on their entire donations made to nonprofit organizations.
The Honolulu Star-Advertiser (http://bit.ly/17T10vx) reports state lawmakers in 2011 approved temporary caps on itemed deductions by high-income taxpayers to address a state budget deficit.
Critics say the measure, which is due to expire in 2016, had the effect of lowering donations to nonprofit organizations because wealthy donors scaled back gifts when they couldn’t write them off.
House Majority Leader Scott Saiki sponsored the bill that would remove charitable donations from caps.
The exception is projected to cost the state $12 million annually.
Both nonprofit organizations and donors had asked legislators to approve the measure.