SAN ANTONIO -- "Strong sales from our ARCO network, our expanding Exxon and Mobil retail branding program and favorable market conditions resulting from strong demand and declining crude oil prices resulted in record-level retail segment performance," Greg Goff, president and CEO of Tesoro Corp., said during the company's third-quarter 2014 earnings call.
"Vehicle miles traveled in California are up at all-time highs," he added.
The retail segment's operating income was $138 million, an increase of 146% year over year from $56 million in the third quarter of last year. Same-store fuel sales were higher during the quarter by approximately 1% versus the third quarter of last year.
Overall, Tesoro has reported third-quarter 2014 net income of $396 million, compared to net income of $99 million for third-quarter 2013. For third-quarter 2014, the company recorded segment operating income of $777 million compared to segment operating income of $197 million in third-quarter 2013. The refining segment's operating income was $578 million for the quarter, compared to $128 million in third-quarter 2013.
"We continue to execute on our strategic priorities and business improvement actions. In addition, our focus on operational efficiency and effectiveness resulted in strong operating performance across our integrated value chain. As a result of this progress and strong commercial results in a favorable market, we delivered the highest quarterly EBITDA in company history," he said in the company's quarterly press statement.
Tesoro, based in San Antonio, is an independent refiner and marketer of petroleum products. Through its subsidiaries, Tesoro operates six refineries in the western United States with a combined capacity of more than 850,000 barrels per day and ownership in a logistics business which includes a 35% interest in Tesoro Logistics LP and ownership of its general partner. Tesoro's retail-marketing system includes more than 2,200 gas stations under the ARCO, Shell, Exxon, Mobil, USA Gasoline and Tesoro brands.
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