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Exclusive: Philadelphia Energy Solutions executives depart amid financial woes

 Exclusive: Philadelphia Energy Solutions executives depart amid financial woes

By Devika Krishna Kumar and Jarrett Renshaw

NEW YORK (Reuters) - Senior executives at Philadelphia Energy Solutions (PES) left amid a broader management overhaul at the East Coast refiner, which continues to struggle financially, three sources familiar with the matter said on Wednesday.

Thomas Scargle, president and chief operating officer, and John Sadlowski, chief commercial officer, have left, the sources said.

A spokeswoman for PES, owner of the largest and oldest refinery on the U.S. East Coast, confirmed that Scargle will retire and Sadlowski had chosen to leave PES.

"Other than that we don't comment on internal business matters," spokeswoman Cherice Corley said in an email.

Last month, Reuters reported that the company is facing another financial crisis just months after emerging from a bankruptcy in August.

Refineries based on the East Coast are generally disadvantaged compared to those on the Gulf Coast due to the cost of shipping crude oil from West Texas or Canada, and PES also has had other problems at the plant in South Philadelphia, including weak gasoline margins and high debt costs.

PES saw its cash balance fall to $87.7 million at the end of 2018 from $148 million just three months earlier, a $61 million decline, according to a post-bankruptcy financial report filed in January. The company entered bankruptcy roughly a year ago with $43 million cash on hand, court documents show.

Refining veteran Mark Smith replaced Greg Gatta as PES CEO following the bankruptcy, and Smith has reshuffled the executive team in recent months.

Sadlowski was responsible for all commercial operations around the company's Philadelphia Refining Complex, including crude and intermediate feedstock supply as well as the marketing of the company's refined fuels portfolio.

He was also responsible for the trading of derivatives related to the company's risk management programme.

(Reporting by Devika Krishna Kumar and Jarrett Renshaw in New York; Additional reporting by Stephanie Kelly in New York; Editing by David Gregorio)

This story has not been edited by Firstpost staff and is generated by auto-feed.

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Updated Date: Mar 21, 2019 02:05:22 IST

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