Americas News
Tesoro Profits Down, Revenues Up in Q2
U.S. refiner Tesoro Corporation [NYSE:TSO] (Tesoro) reported profits of $227 million in the second quarter of the year, down from $387 million in Q2 2012, as its revenues grew 21 percent to $8.9 billion.
The company said the unusually weak profit margin was related to turnaround activity, but that was partially offset by discounted crude oil, as foreign heavy, Canadian light sweet, and Bakken crude oil remained cheaper than domestic alternatives.
"Our solid second quarter results reflect a strong operating performance and continued execution of our strategic plan," said President and CEO Greg Goff.
During the quarter, Tesoro announced the formation of a venture with Savage Companies to develop a 120,000 barrel-per-day (bpd) facility at the Port of Vancouver in Washington State to move oil from trains to ships.
Announcing the plan this spring, the companies said that the facility would allow for the use of more North American oil in West Coast refineries.
Also during the quarter, Tesoro agreed to sell its interest in Teosoro Hawaii LLC, including the Kapolei refinery.
Goff said at the time that the Hawaii operations "do not align with our strategic focus."
Overall, Tesoro increased its refinery throughput to 624 thousand barrels per day (mbpd) from 523 mbpd in Q2 2012.
