Deals
Refiner Cuts Costs, Offers Buyouts as Ethanol Credits Rise
- Spending cuts needed, CEO Rinaldi says in e-mail to workers
- Company delays capital projects, cites $250 million RIN costs
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Philadelphia Energy Solutions, operator of the largest oil refinery on the East Coast, said its finances are “significantly stressed” and it’s looking to cut workers, reduce benefits and delay capital projects.
Company pension contributions will be frozen, healthcare benefits will be cut and buyouts will be offered to salaried employees, Chief Executive Officer Phil Rinaldi said in an e-mail to workers Wednesday obtained by Bloomberg. The company, owned by Carlyle Group LP and Energy Transfer Partners LP, said about $250 million in costs for government-backed ethanol blending credits this year and low fuel prices along with high East Coast inventories are forcing it to reduce spending in all areas.