Philadelphia, Pennsylvania – Sunoco plans to exit its refining business and has put its refineries in Pennsylvania up for sale. The company intends to focus on its logistics and retail businesses.
If a suitable transaction cannot be implemented for the refineries, the company intends to idle the main processing units at the facilities in July 2012.
“We have made progress in increasing the efficiency of our refineries over the last several years, but given the unacceptable financial performance of these assets, it is clear that it is in the best interests of shareholders to exit this business and focus on our profitable retail and logistics businesses which have higher returns, growth potential, and provide steady ratable cash flow,” said Lynn Elsenhans, chairman and CEO of Sunoco.
Together with the separation of SunCoke Energy and the sale of its chemicals business, Sunoco’s decision to exit refining marks a fundamental shift away from manufacturing that will reposition the company, Sunoco said in a statement.