For the fourth quarter, the company recorded segment operating income of $85 million, excluding special items, compared to a segment operating loss of $129 [image-nocss] million, excluding special items, in the fourth quarter a year ago. The increase in operating income is due primarily to higher product values and lower feedstock costs.
"We are pleased with the year-over-year improvement in the fourth quarter and our ability to continue to deliver gross margin improvements in excess of the market gains," said Greg Goff, president and CEO of Tesoro. "For the full year 2010, in a flat margin environment, the company generated $187 million of incremental EBITDA relative to 2009. This clearly demonstrates Tesoro's ability to deliver fundamental improvements in the business."
He added, "2010 proved to be another challenging year in our industry. Spare global refining capacity and excess light product inventories continued to impact margins. As we look forward, we are cautiously optimistic about improving market conditions, but continue to plan for a margin environment similar to 2010. We have established strategic priorities that are focused on driving free cash flow, strengthening the competitive position of the company and increasing shareholder value."
San Antonio, Texas-based Tesoro is an independent refiner and marketer of petroleum products. Through its subsidiaries, it operates seven refineries in the western United States with a combined capacity of approximately 665,000 barrels per day. Tesoro's retail-marketing system includes more than 875 branded retail stations, of which more than 380 are company operated under the Tesoro, Shell, Mirastar and USA Gasoline brands.
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.