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Tesoro Adds New Directors

Tesoro Petroleum Corp., an independent refiner and operator of more than 100 convenience stores, increased its board of directors to nine members with the election of James Clingman and A. Maurice Myers.

Clingman is president and chief operating officer of San Antonio-based H.E. Butt Grocery Co., where he also serves on the grocery firm?s board. Myers serves as chairman and CEO of Houston-based Waste Management Inc. and has held executive positions at America West Airlines and Aloha Airlines.

Tesoro yesterday also reported net earnings for the 2001 second quarter of $30 million, or $0.70 per share, which is double the $0.35 recorded for the second quarter 2000.

?Our outstanding results this quarter were driven by very strong margins for the first two months of the quarter in combination with record-high refinery throughput of 260 thousand barrels per day,? said Bruce Smith, Tesoro?s chairman and CEO.

Operating profit for the refining and marketing segment increased 60 percent to $65 million compared to the 2000 second quarter. Gasoline and diesel fuel margins also rose nearly 20 percent stemming from concerns that supply would be inadequate to meet seasonal gasoline demand, Smith said.

Operating profit for the first six months increased by 61 percent to $124 million, compared to the same period last year. The increased operating profit resulted mainly from a 25-percent increase in refinery production with a 5-percent increase in refinery throughput.

?Unusually high inventory levels caused July refining margins to fall below the average second quarter 2001 level,? Smith said. ?However, recently there have been improvements in the market. If this trend continues, and provided that we operate our refining system at about the same level as the second quarter of 2001, we expect third-quarter earnings to continue rising.?
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