Hess Announces Charge Related to Closure of HOVENSA Joint Venture Refinery
Hess Corporation announced today that it will take a $525 million
after-tax charge against its fourth quarter 2011 earnings as a result of
the shutdown of the HOVENSA L.L.C. refinery in St. Croix, U.S. Virgin
Islands, a joint venture between Hess and Petroleos de Venezuela S.A.
Following the shutdown, the complex will operate as an oil storage
terminal.
HOVENSA said in a release today that its losses at the refinery have
totaled $1.3 billion in the past three years alone and were projected to
continue. HOVENSA′s losses have been caused primarily by weakness in
demand for refined petroleum products due to the global economic
slowdown and the addition of new refining capacity in emerging markets.
In the past three years, these factors have caused the closure of
approximately 18 refineries in the United States and Europe with
capacity totaling more than 2 million barrels of oil per day. In
addition, the low price of natural gas in the United States has put
HOVENSA, an oil-fueled refinery, at a competitive disadvantage.
HOVENSA said it had explored all available options to keep the refinery
operating but severe financial losses left it with no other choice.
Hess Corporation, with headquarters in New York, is a global integrated
energy company engaged in the exploration, production, purchase,
transportation and sale of crude oil and natural gas, as well as the
production and sale of refined petroleum products. More information on
Hess Corporation is available at www.hess.com.
Cautionary Statements
This news release contains projections and other forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934.These
projections and statements reflect the company′s current views with
respect to future events and financial performance.No assurances
can be given, however, that these events will occur or that these
projections will be achieved, and actual results could differ materially
from those projected as a result of certain risk factors.A
discussion of these risk factors is included in the company′s periodic
reports filed with the Securities and Exchange Commission.
Hess Corporation
Investors:
Jay Wilson, 212-536-8940
or
Media:
Jon
Pepper, 212-536-8550
