Tesoro loss bigger than expected
Tesoro Corp., which operates the largest of two refineries in Hawaii, posted a bigger-than-expected loss for the first quarter as narrower refining margins and higher oil prices overshadowed production and revenue gains.
The San Antonio-based company said yesterday it had a loss of $82 million, or 60 cents a share, compared with a profit of $116 million, or 84 cents a share, a year earlier. The most recent quarter includes a $45 million pretax benefit related to Trans Alaska Pipeline System tariffs.
The loss was deeper than the 51 cents a share expected by analysts polled by Thomson Financial.
Revenue increased 68.5 percent to $6.53 billion, from $3.88 billion a year ago.
Tesoro's refining margin last quarter at its Campbell Industrial Park facility in Kapolei fell to a negative $1.49 a barrel versus a gain of $3.94 a barrel a year ago. The refining margin is the spread between the cost of crude oil and price of refined products.
The Hawaii facility's yield, or the total number of barrels of refined products of gas, jet fuel, diesel fuel and heavy oils, fell 18.8 percent to 69,000 barrels a day from 85,000 barrels a day. In February, Tesoro was forced to shut down some of its refinery units for as long as a week due to an electrical fire. Tesoro Hawaii has the capacity to process 95,000 barrels of oil a day.