Tesoro Completes Albertsons Fuel Express Acquisition

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Tesoro Completes Albertsons Fuel Express Acquisition

05/03/2012

SAN ANTONIO -- Many positive things happened at Tesoro Corp.'s convenience store division during the first four months of 2012, Greg Goff, the company's CEO, reported during an investor conference call this morning.

Topping the list is that the company completed its purchase of 49 Albertsons Fuel Express retail stations from Supervalu Inc. The c-stores with gas are located in Washington, Oregon, California, Nevada, Idaho, Utah and Wyoming.

Tesoro spent $37 million in its fiscal first quarter to close the Supervalu deal.

Another achievement was made during April, as Tesoro began to take possession of roughly 225 retail stations in southern California from Thrifty Oil Co. Tesoro said it will take possession in a phased process, with approximately 175 stations to be transferred during the second and third quarters of this year and the balance in 2014.

"These transactions add ratable and profitable supply outlets, further strengthening our refining and marketing integration," said Goff.

Tesoro's retail division suffered a loss of $4 million during its 2012 fiscal first quarter, compared to a gain of $2 million in the same timeframe last year. Goff cited higher fuel prices for the decline, as marketing margins were down and same-store fuel sales dropped by 1 percent vs. the same quarter last year.

"We've seen an improvement in April at our retail locations due to lower fuel prices, [though]," Goff noted.

"We expect second-quarter demand for gasoline to increase as is typical for the time of year."

As for the entire company, Tesoro earned a net income of $56 million in its 2012 fiscal Q1, compared to a $10-million profit during the same timeframe last year. Despite a profit that was nearly half of last year's gain, Goff said he was "pleased" with Tesoro's latest quarterly results.

"2012 is a heavy turnaround year for us," he said. "We completed nearly half of our planned turnaround activity for 2012 during [our first] quarter."