Irving Oil, owner of Canada's largest refinery, is launching a strategic review that includes the option of a full or partial sale, the privately-held company said on Wednesday.
The New Brunswick-based company owns the 320,000 barrel per day (bpd) Saint John refinery on Canada's east coast, and the 75,000 bpd Whitegate refinery in Ireland, the only one in the country. It also operates more than 900 fuelling stations across eastern Canada and the northeastern United States.
In a statement posted to its website, Irving said it is evaluating a "series of options" for its future.
"Consideration will be given to a new ownership structure, a full or partial sale, or a change in the portfolio of our assets and how we operate them," the company said.
Irving sells its fuel products across the U.S. East Coast, which is the largest gasoline-demand market in the United States and home to some of the world's busiest airports.
"The Irving refinery is a key component of the East Coast market," said John Auers, managing director of Refined Fuels Analytics.
Though margins have fallen from 2022 highs that led to record refining profits, tight crude supplies and high fuel demand has enabled refiners to continue reporting strong earnings.
"The entire last year is proof that refiners can make money," said Charlie Kemp, refining consultant at Baker O'Brien.
Over the past year U.S. refiners have largely chosen to store their cash and return it to shareholders rather than acquire other refineries at scale.
Potential refinery buyers also have to deal with the high cost of maintaining aging refining infrastructure amid the prospect of lower long-term demand and more competition from new facilities in the Middle East, Asia and Africa.
