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SAN ANTONIO -- Aloha may mean hello, but it also means goodbye in Hawaiian. Tesoro Corp. said "aloha" to 32 gas stations in the 50th state. Sales of the retail locations are expected to be completed by the second half of 2012, reports Pacific Business News.
The company also sold the largest refinery in Hawaii --located in Kapolei -- which pumps out 94,000 barrels of oil per day.
“Following a comprehensive analysis, we’ve determined that our business in Hawaii does not align with our strategic focus on the Mid-Continent and West Coast, and can provide greater value for a company that will invest in the business and employees,” said Tesoro President and CEO Greg Goff. “While the Hawaii business is no longer in line with our vision for Tesoro’s future, there is no question that it offers value for the right investor.”
Tesoro Hawaii employs 550 people, including 260 at the Kapolei refinery.
In other Tesoro news, the refiner projects a loss of 55 to 80 cents per share for its 2011 fiscal fourth quarter. That figure is a complete turnaround from the $2.39 Tesoro earned in its 2011 third quarter.
The convenience store chain and refiner was largely hurt by a weakening crude oil spread, according to Zacks Equity Research. A low margin environment in California also played in the role in the expected loss. However, according to Thomson Reuters, "The unusually weak market conditions in California during the fourth quarter recently improved."
Weaker earnings due to refining have clearly not thwarted Tesoro's c-store division, which Zacks said accounts for 28 percent of the company's business. As CSNews Online previously reported, Tesoro plans to add 292 stations by 2014, following separate purchase and lease agreements with Supervalu Inc. and Thrifty Oil Co. Once completed, Tesoro would have nearly 1,500 retail stores nationwide.
Tesoro will officially announce its latest earnings and is expected to discuss the sale of Hawaiian operations during its conference call on Feb. 2 at 7:30 a.m. Central Standard Time.