Tesoro's earnings skyrocket on higher margins
The refinery owner sees its margin in Hawaii improve
Star-Bulletin staff and news services
SAN ANTONIO » Tesoro Corp., which operates the larger of the two oil refineries in the state, said yesterday its second-quarter net income surged 77.2 percent due to strong refining margins on the West Coast.
The San Antonio-based refiner said earnings rose to $326 million, or $4.66 a share, compared with $184 million, or $2.62 a share, a year earlier. Revenue grew 22.2 percent to $4.93 billion from $4.03 billion.
The company forecast capital spending of about $630 million this year, including turnarounds at its refineries.
At Tesoro's Campbell Industrial Park facility, the total number of barrels of refined products of gas, jet fuel, diesel fuel and heavy oils rose 22.9 percent to 87,000 daily barrels from 71,000 a year ago when the company experienced reduced throughput at the refinery due to a scheduled maintenance turnaround.
Tesoro's refining margin in Hawaii increased to $7.32 a barrel from $6.71 a barrel.
Refiners nationwide are benefiting from higher margins as oil prices hit new highs and gas supplies remain tight amid continued fighting in the Middle East.