hovensa closing

I doubt they'd close and walk away any time soon. Too much money, investment and capacity sitting on the table. As has been reported, they have reduced operations several times at several refineries during the tough economy, with the stated expectation that they will ramp up when/if it improves.

If push came to shove, I'd bet Hess would sell their stake to someone else, perhaps more to Chavez. Venezuelan oil has to have somewhere to put into port or their country's economy tanks.

The Pedevesa contract comes to a close soon, I know that. (a good thing) If they were going to close they would not be investing heavily in maintenance, as they currently are.

Edit: Since "Hovensa" is a conjunction of "HOVIC" (Hess Oil Virgin Islands Corp) and PEDEVESA (Petroleos de Venezuela, SA) perhaps the name and the business structure will change as Pedevesa goes away, but I'm as sure as a layman can be that the profitable units within the refinery will continue to run into the foreseeable future.

Hovensa / Hovic as previously known will never be again. Very soon the refinery will only be a fraction of its prior self in preparation of what’s probably the inevitable. None will buy it due to the issues with the government, permitting and regulatory agencies not to mention economics that have been backward for ~3 years causing insurmountable losses. As far as fuel sources I would think Houston or maybe Aruba / Venezuela (hello LEAC X 3). I’m sure gasoline will be greatly increased as well maybe double. Very sad state of affairs for them and St. Croix.

just heard a BIG announcement to be made regarding jobs at the refinery

Dixie, anything to report about the BIG announcement?

If you look on their site, under careers, it is looking like they are not hiring anyone for anything right now,
http://www.hovensa.com/careers.html

It's called SENSATIONALISM and SCARE TACTICS. That refinery will NOT be closed.

Just spoke to some outside contractors today who said Hovensa had just stopped their contracts. put everything on hold. Doesn't sound good-- they were on their way back to stateside company locations.

Sorry Cruz, but it is not a scare tatic.......it is for real, check the Avis for Friday Jan 13. Goldman Sachs made the prediction.
And the refinery is losing 30 million dollars a month.

PR gets it's fuel from ST Croix..........they do not have a refinery there.

Hovensa has contracts with the airlines the military as well as PR government that well exceed the next 4 years the litigation alone will keep the plant open........its hype to create sympathy for the company's bottom line.........just my very well informed opinion.

Well somebody's lying cause both versions can't be true!

Well somebody's lying cause both versions can't be true!

opinions are like a**holes, everyone's got one and everyone thinks everyone else's stinks lol. *-)

If I had a few dollars for every time in the last couple of decades I've heard a rumor "from a reliable source" that Hovensa is closing I'd be considerably better off financially than I am now!

People have this illusion dat hovensa can never close. Yeah it been rumored before but have these rumors ever been during a time that for two year hovensa been loosing and have to borrow for 2 yrs? Im sure other refinerys said the same thing before they close. Dont be fooled people this can happen

People have this illusion dat hovensa can never close. Yeah it been rumored before but have these rumors ever been during a time that for two year hovensa been loosing and have to borrow for 2 yrs? Im sure other refinerys said the same thing before they close. Dont be fooled people this can happen

Nobody's disputing that Hovensa or any other business COULD close and nobody has given the impression that they're under any illusion that Hovensa "can never close".

Really? The good people at The Phillips refinery in Guayama would disagree. In fact back in the 90s I brought 7000 barrels of gas from there by barge to supply St Thomas. Most people assume that Hess/Hovensa supplies the entire region but they don't. The oil business is very complex.

PR gets it's fuel from ST Croix..........they do not have a refinery there.

I have talked to a number of people connected to Hovensa (employees, contractors, etc) since the Avis article about the GS report. I have heard some wild tales, but the one thing that seems pretty consistent is that the refinery is not just going to "close" one day. If they no longer intend to refine oil here, it will be a lengthy wind down of operations which we will all get to watch and fret over.

Chavez is having problems at home, he is not the real OIL Baron that he believed he was. The Hess People have a BIG SMILE on there face.:-o

On Hovensas website they still have open positions posted.

i have heard from reliable source that hovensa will be closing for sure. does anyone have any news??
notices going out in feb.

where would our fuel come from if that does happen?? P.R.???

Here's the deal. Losses from operations are greater than $100m a month now. Financially the place simply can not continue to operate as a refinery much longer. Hess was hard-pressed last year at their shareholder meeting, held every May, about HOVENSA. Hess promised to improve efficiency and get as close to break-even as possible. Obviously and despite everybody's best efforts that hasn't happened. HOVENSA's losses in the 3rd quarter resulted in wiping out 74% of Hess' profit, and shareholders aren't going to tolerate that any longer. Forward-looking, the margins and operating losses for HOVENSA look even worse than they did in Nov/Dec.

The next shareholder meeting is in May, and Hess will likely announce that they're either going to close the facility, or shut down refining and turn the place into a fuel depot and marine terminal. The bulk of employees will be furlowed after the decision in May.

Long story short, expect a plant closing notice after the Hess shareholder meeting in May. The effect on St. Croix will be devastating.

yow

http://seekingalpha.com/news-article/2047558-hess-reports-estimated-results-for-the-third-quarter-of-2011

nine months 2011 versus 2010

Income (loss) from equity investment in HOVENSA L.L.C. (133) (174)

That is in millions...

Good God. Start packing...