Tesoro Fuel Sales Volume Rises 120% Over Past Year
Arco retail purchase boosts refiner’s earnings report
Published in CSP Daily News
SAN ANTONIO, Texas -- Tesoro Corp. reported same-store fuel sales up by almost 2% in the fourth quarter or 2013 vs. fourth quarter last year. However, retail fuel margins were down relative to the fourth quarter of last year.
Total retail fuel sales volumes were up over 120% year-over-year driven by the addition of approximately 835 dealer-operated Arco retail stations on June 1, 2013, the company said in its quarterly report.
"Despite a lower margin and crude oil differential environment, and weaker earnings relative to 2012, 2013 was a year of important strategic accomplishments for Tesoro," said Greg Goff, president and CEO. "The acquisition of the Los Angeles refining, marketing and logistics assets, the acquisition of the Northwest Products System and the sale of our business in Hawaii collectively represent significant achievements in the continuing transformation of Tesoro. We returned over $500 million to shareholders in the form of dividends and share repurchases and ended the year with a strong balance sheet even after nearly $3 billion in acquisitions."
For the quarter, Tesoro reported a net loss of $7 million, or $0.05 per diluted share compared to net income of $27 million, or $0.19 per diluted share for the fourth quarter of 2012. Fourth-quarter results include $40 million in variable stock-based compensation expense. The 2013 fourth-quarter results also include a net loss from discontinued operations of $3 million, or $0.02 per diluted share related to divested Hawaii business. Net loss from continuing operations of $4 million, or $0.03 per diluted share compares to net income from continuing operations of $184 million, or $1.32 per diluted share for the fourth quarter of 2012.
For the full year 2013, the company reported net income of $412 million, or $3 per diluted share, vs. net income of $743 million, or $5.25 per diluted share for the full year 2012.
Net income from continuing operations for the full year 2013 was $392 million, or $2.85 per diluted share, vs. $876 million, or $6.20 per diluted share for the full year 2012. Excluding special items, for the full year 2013, the company earned net income from continuing operations of $386 million, or $2.81 per diluted share, vs. an adjusted net income from continuing operations of $922 million or $6.52 per diluted share for the full year 2012.
"The company is well positioned to move forward with our strategic objectives for 2014 and beyond," said Goff. "We're focused on delivering the synergies associated with creating a world scale refining and marketing business in California, enhancing gross margins by supplying additional advantaged crude oil to our refining system and growing the logistics business while maintaining strong financial discipline."
Tesoro Corp. is a leading independent refiner and marketer of petroleum products. Based in San Antonio, Texas, its operations extend across 18 states.