A private equity investor asked ADI to conduct an assessment of the refining sector in Hawaii in support of an investment thesis. ADI added value through the following contributions:
- Conducted a competitive benchmarking of two refineries in Kapolei, HI based on feedstock procurement, product slate and yield, capacity and configuration, maintenance and operating cost structure, and estimated capital spend driven by IMO bunker fuel sulfur specifications
- Assessed regional refining market including current and forecasted fuel supply, demand, and retail pricing and impacts on the business outlook for Hawaiian refineries
- Evaluated Hawaii’s overall energy policy and regulatory climate including commitments to reduce its greenhouse gas footprint and resulting strategic implications on the refining sector
- Developed an investment thesis for both near- and medium-term scenarios
