Delta Air to sell east-coast oil refinery subsidiary

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Delta Air to sell east-coast oil refinery subsidiary

Delta Air lines, usually referred to simply as Delta, headquartered in Atlanta, had been trying to sell its oil refinery in Trainer, Pennsylvania, at least two people familiar with the subject matter revealed on Saturday, February the 2nd, 2019, as cited by a Reuters report.

Last year Delta had attempted to sell a partial stake of the plant, however the approach did not conceive fruit and Delta Air Lines has still been on the lookout for a potential buyer. Besides, the Atlanta-based airline last year had hired investment banks in order to estimate a proper valuation, alongside organize the sale of a stake of its Monroe Energy refining subsidiary, signaling the growing risk-appetite of running an energy business in the east coast of United States in the face of increasing cost of acquiring crude oil.

However, Delta’s last year’s effort to sell a stake of its subsidiary refinery did not end well and it failed to attract sufficient investors, since a refinery on the East Coast had not been viewed as a profitable asset.

Delta, the largest airline in the United States in terms of market capitalization, has now been seeking to sell its entire plant, with focusing on a buyer who would agree to sign a long-term purchasing contract, meanwhile allowing the Delta to buy its jet fuel from the plants with an incentive.

Nonetheless, a Delta spokesman, Morgan Durrant did not immediately respond while asking for comments regarding this potential sale and shift in the strategy.