Q: Hello team,
Your opinion please on the temporary shut down of processing
operations at its refinery.
Thanx!
Your opinion please on the temporary shut down of processing
operations at its refinery.
Thanx!
5i Research Answer:
The stock has moved higher on the news, and the company said operations should be up and running within four weeks. Its blending, shipping, terminal, and rack activities remain operational at the refinery, and this allows for refined fuels to be offloaded from ships and rail directly to the refinery. The company has been proactive, and has increased imports of refined products to their on-site shipping terminal. We do not view this shutdown as uncommon in the industry, however, much depends on if the temporary shutdown lasts longer than expected, or if there are other unforeseen issues. Overall, we consider the news to be fairly minor and the market seems to vew it as immaterial for now as well.