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Tesoro earnings decline again

SAN ANTONIO >> Tesoro Petroleum Corp., which operates the largest of Hawaii's two refineries and 35 gas stations in the state, posted its sixth loss in eight quarters as costs rose.

The fourth-quarter net loss narrowed to $7.9 million, or 12 cents a share, from $27.7 million, or 43 cents, a year earlier, the oil refiner said. Sales rose to $2.11 billion from $2 billion.

Manufacturing costs rose 7.4 percent as prices for natural gas, which is used to power refineries, surged.

Higher costs eroded gains from wider profit margins on refined fuels and an increase in production. Results fell short of analyst expectations as fuel output declined at a plant near San Francisco and crude-oil costs rose.

Tesoro's shares have more than tripled in the past year.

The results included costs for a drop in the value of some filling stations and for termination of a supplemental retirement plan for executives. Excluding those expenses, the net loss was $1.5 million, or 2 cents a share, Tesoro said.

On that basis, Tesoro was expected to post per-share profit of 17 cents, the average estimate from 12 analysts surveyed by Thomson Financial.

Tesoro's six refineries had an average fourth-quarter profit margin of $5.81 per barrel of oil processed, up from $5.20 a year earlier, as prices for gasoline and other fuels rose. The gain came even as oil costs rose.

Total production climbed 2.6 percent to 505,300 barrels of fuel a day.

The company has cut jobs and sold assets to reduce debt and bolster its credit ratings.

Tesoro lowered debt to $1.61 billion at the end of 2003 from $1.98 billion at the end of 2002, and its debt-to-capitalization ratio fell to 62 percent from 69 percent.

5 Hawaiian board members resign

Five members of Hawaiian Holdings Inc.'s board of directors have stepped down because of the expiration of the company's directors and officers insurance.

Robert Coo; Joseph Hoar, a retired general; William Weisfield; Sharon Soper; and Samson Poomaihealani submitted resignations.

Remaining on the board are Chairman and Chief Executive John Adams, who was removed by a federal bankruptcy judge as chief of Hawaiian Airlines; Gregory Anderson; Thomas Trzanowski; Edward Safady; and Reno Morella.

The D&O insurance policy was scheduled to expire at midnight last Saturday and the board decided not to renew its existing coverage. However, it is pursuing extending the limits of its primary policy for another year.

Hotel association presents awards

The Hawaii Hotel & Lodging Association has named a Kahala Mandarin Oriental Hawaii concierge as outstanding lodging employee of the year.

Marion Sato was selected to receive the hotel industry's top annual award based on her dedication and commitment to serving guests and employees.

Cari Maruyama of the JW Marriott Ihilani Resort and Spa and Kathy Teruya of the Waikiki Beach Marriott Resort & Spa were named as second and third place winners in this category.

The Outstanding Lodging Employee of the Year award was one of 11 awards presented at a recent annual statewide luncheon that honored Hawaii's top hospitality industry employees.

[ HAWAII INC. ]

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NEW JOBS

>> Kyle Zakahi has been appointed to Jamba Juice general manager at Kukui Grove Shopping Center, Kauai. He began his career with Jamba Juice Pearlridge as a team member, was promoted to team lead in January 2001 and then assistant manager in November 2001. He was most recently general manager of the company's Honolulu Airport Trade Center branch.

>> Craig L. Neher has joined Hawaii Commercial Real Estate as an office building leasing and sales specialist. He will be responsible for negotiating leases for office building tenants and assisting buyers and sellers of investment properties. His previous real estate experience was with Colliers Monroe Friedlander as a leasing agent for Davies Pacific Center.

ON THE BOARD

>> The Young Lawyers Division of the Hawaii State Bar Association has elected Peter V. Lee, an associate at Stanton Clay Chapman Crumpton & Iwamura, to president for 2004. Other officers are: Vice President Roxann Chun Bulman, Treasurer Ryan G. S. Au and Secretary Scott C. Arakaki. Directors whose terms expire Dec. 31, 2004 are: Darcy Kishida, Leila Rothwell-Sullivan, Nichole Shimamoto and Elizabeth Contrades. Directors whose terms expire Dec. 31, 2005 are: Kekuailohia M. Beamer, John Yong Uk Choi, Emily Reber Porter, Ryan Sanada, Gavin Thornton, Jefferson R. Malate and Cindy Young.

RECOGNITION

>> Junior Achievement of Hawaii has chosen its 2004 Hawaii Business Hall of Fame laureates: David DeLuz Sr., Linda and Kane Fernandez, Donald Graham, Christopher Hemmeter, Michael H. Lyons II and James Romig.