(1) Tesoro Corp (TSO.N) on Friday said three people died in an early morning blaze at its 120,000 barrel-per-day refinery in Anacortes, Washington.
(2) 120,000 barrel refining capacity gone.
(3) TSO stock up by 3.5% this morning.
WTF?
Update from REuters: The fire could mean expensive legal trouble for Tesoro.
"I can confidently predict there are lawyers already on-site or in contact with unions representing Tesoro employees and signing up claimants as we speak," said Lester Brickman, a professor at the Benjamin N. Cardozo School of Law in New York, and an expert in mass tort litigation. "The ultimate liability depends on the number of people who had sufficient proximity to the fire to have viable claims."
"Realistically, at this point, there is little Tesoro can do to minimize liability," said Brickman. "Naphtha is a very volatile substance, and if Tesoro were found to have been significantly negligent, that could magnify its liability."
2 comments:
The loss is probably insured. This does not explain why the stock is up (surely for unrelated reasons) but explains why it is not down.
K
No insurance covers everything. If negligence is shown, it can cost TSO's whole capital.
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