Tesoro Corp.’s worse than expected loss due to lower refining margins led declines of energy stocks. As Tesoro announced fourth quarter loss, it dropped by 5.9%. Exxon Mobil and Chevron dropped by 0.3% and 1%, respectively. Valero Energy declined by 3% and Marathon Petroleum dropped by 5.5%.
The NYSE Arca Oil Index declined by 0.9%, the Philadelphia Oil Service Index dropped by 0.8%. Tesoro announced to suffer expected last quarter loss between 55 to 80 cents per share. Analysts were expecting earnings of 74 cents per share for the refiner.
The San Antonio-based refiner expects 2011 profit of between $3.85 to $4.10 per share against market expectation of $5.49 per share. That cost advantage shrank during the fag end of 2011, when the rate of European-based Brent crude futures declined due to higher supply from Libya as well as the possibilities of decreased demand in Europe.
On an optimistic note, the Tesoro informed that uncommonly poor market conditions in California have lately improved. It said that depreciation, manufacturing costs as well as interest expenditure for the last quarter are expected to as per earlier provided targets.Previous Post » Battery Fires Prompt GM to Alter Volt