Tesoro, Shell Report Improved 4Q Results
SAN ANTONIO, Texas and LONDON, U.K. -- Tesoro Corp. reported net income of $3 million on revenues of $5.5 billion for the fourth quarter of 2010, both figures improvements over the net loss of $179 million and revenues of $4.67 billion for the same period a year ago.
Meanwhile, Royal Dutch Shell PLC on Thursday posted a 48.2 percent increase in adjusted profit for the fourth quarter of 2010. However, the Anglo-Dutch oil company missed analyst expectations, citing lower refining margins, higher taxes and weaker trading results that were only partially offset by rising output and higher oil prices, according to reports out of London.
For the full year, Tesoro, an independent refiner and marketer of petroleum products, posted a net loss of $29 million on revenues of $20.6 billion. This compares to a net loss of $140 million on revenues of $16.9 billion for 2009.
Tesoro benefitted from an increase in operating income due primarily to higher product values and lower feedstock costs at its refineries.
"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 in a statement. "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."
Shell’s CEO Peter Voser said the oil company’s performance improved in 2010 and established a foundation for a stronger future. From 2009 to 2010, oil and gas production should increase by 11 percent and cash flow by 50 percent to 80 percent, he said.