Tesoro Petroleum Inc fka TSO

[jaj1]

=DJ Tesero Sees Strong 4Q On Margins, Cheaper Crude Oil

.
DOW JONES NEWSWIRES
Ê Tesoro Corp. (TSO) issued preliminary fourth-quarter earnings results above analysts estimates as the refiner continues to see higher margins from a year earlier, thanks to crumbling crude-oil prices. Ê Margins also got a boost as several of the company's West Coast facilities underwent unplanned maintenance, leading to historically low inventory of gasoline supply. Ê The nation's third-largest refiner by capacity expects earnings of 60 cents to 75 cents a share, with a 41-cent bad-debt reserve being partially offset by a 12-cent reversal of reserves for asset-retirement costs. Analysts polled by Thomson Reuters were last expecting earnings of 48 cents. Ê The margin gains more than offset lower-than-expected daily throughput of 550,000 barrels, compared with earlier guidance of 575,000. That was mainly due to a December coker disruption in Los Angeles and unplanned downtime at a Washington refinery. Ê Tesoro expects fourth-quarter gross margin, excluding significant one-time adjustments, to be about $12 to $12.50 per barrel, down from the third quarter's $16.69 but up from the prior year's $8.28. The company will release its fourth-quarter results on Feb. 19. Ê Refiners were facing tighter margins before oil's bull run ended in July because they were unable to pass through the record oil prices to consumers. Ê Shares were down 4.8% to $14.03 in recent trading, amid a broad market decline. Ê -By John Kell, Dow Jones Newswires; 201-938-5285;