"Anybody who didn't see it coming wasn't paying attention," said Jim Savage, president of United Steelworkers Local 10-1, which represents about 600 workers at the South Philadelphia refinery who could be out of work next year.
Under Elsenhans, Sunoco has sold two refineries in the Midwest, closed its Eagle Point refinery in Gloucester County, spun off its metallurgical coke business and sold its home heating oil business. Last month, it sold the last of its chemicals manufacturing operations.
Elsenhans has made clear in the last year that Sunoco's profit-challenged refineries were not a core operation, and that the company's future resides as a retail reseller of fuel and convenience-store items, as well as in the transportation of fuels through its logistics network.
"We have made progress in increasing the efficiency of our refineries over the last several years," she said in a statement, "but given the unacceptable financial performance of these assets, it is clear that it is in the best interests of shareholders to exit this business and focus on our profitable retail and logistics businesses, which have higher returns, growth potential, and provide steady, ratable cash flow."
While the broader stock market was falling, Sunoco shares were up 5.6 percent in afternoon trading, to $38.11 on the New York Stock Exchange.
Sunoco said it would conduct a comprehensive strategic review of the company to determine the best way to deliver value to shareholders. Credit Suisse Securities L.L.C. has been retained to assist in the review process.
"No option is off the table," Elsenhans said in a conference call Tuesday with investment analysts.
