During a call with investors, Gregory Goff, CEO of Tesoro said that refinery shutdowns and disruptions had led to big profits on the company’s bottom line for the first quarter. Tesoro’s profit per bbl in Q1 jumped by 20 cents, totalling to California profits of US$119 million in the first quarter for the company.
California gasoline prices have increased by 57 cents over the lat month, it has been reported, and are US$1.05 higher than the US average. Consumer Watchdog has called on the State Senate to subpoena Goff and other oil company CEOs, who refused to testify at recent state oversight hearings.
Jamie Court, President of Consumer Watchdog said, “California’s oil refiners are the only industry in American that make a fortune when their factories break down. The oil companies are acknowledging to investors that they have been getting fat off the shutdowns in their own refineries even as they refuse to appear before legislators in Sacramento.”
Further refining company comments
Goff also said the following when answering a call from a Bank of America analyst, “there’s no question that during the first quarter with what happened to Tesoro as a result of the disruption at the Martinez refinery because of the labour disruption and then with other operating and planned maintenance things across the whole system, it was very supportive to the margin environment there. In California, crack spreads have improved related to the unplanned and planned refinery maintenance activities.”
Tesoro is California’s second largest refiner, behind Chevron. Together they control 55% of the state’s refining capacity. Jeff Gustavson, a General Manager at Chevron made similar comments to the above in an investor call saying, “margins increased earnings by US$435 million driven by unplanned industry downtime and tight product supply on the US West Coast.”
Edited from press release by Claira Lloyd
Read the article online at: https://www.hydrocarbonengineering.com/refining/11052015/tesoro-consumer-watchdog/