SAN ANTONIO -- Tesoro Corp. has reported net earnings of $43 million, or 61 cents per share for first-quarter 2006, up 54% from net earnings of $28 million, or 40 cents per share for first-quarter 2005.
Results for first-quarter 2006 included after-tax charges of $4 million, or six cents per share, primarily relating to the previously announced sale of 13 retail sites in western Washington.
Tesoro's first-quarter earnings improvement was a significant achievement considering weaker market conditions, higher energy costs, the substantial [image-nocss] turnaround work at our Golden Eagle refinery and the slow-down at our Alaska refinery due to extreme icing in the Cook Inlet, said CEO Bruce Smith. During January and February's low margin environment, we completed the ultra-low-sulfur diesel project at Golden Eagle and additional maintenance that enabled us to optimize throughput and yields in March when margins improved.
The company's increase in net earnings during the 2006 first quarter compared to the prior year was primarily due to higher throughput levels, lower interest expense as a result of debt reduction and refinancing in 2005, and decreased corporate general and administrative expenses.
Tesoro is an independent refiner and marketer that operates six refineries in the western United States with a combined capacity of approximately 560,000 barrels per day. Its retail-marketing system includes nearly 475 branded retail stations, of which more than 200 are company owned and operated under the Tesoro and Mirastar brands.
Separately, the oil company formerly known as Amerada Hess Corp., New York, announced that it has officially changed its name to Hess Corp. (trading under the stock symbol HES). It also increased the number of authorized shares from 200 million to 600 million, in order to effect a stock split.
The HESS' brand is firmly established in our marketing and refining operations, readily recognized by our customers and in the communities we operate, and increasingly identified with our global exploration and production activities, said John B. Hess, chairman and CEO. This corporate name change strengthens recognition of our brand across all of our activities.Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.