Tesoro Corporation (TSO) has reported 77.73 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $169 million, or $1.42 a share in the quarter, compared with $759 million, or $6.13 a share for the same period last year.
Revenue during the quarter dropped 15.48 percent to $6,544 million from $7,743 million in the previous year period. Gross margin for the quarter contracted 984 basis points over the previous year period to 20.05 percent. Total expenses were 94.50 percent of quarterly revenues, up from 83.31 percent for the same period last year. That has resulted in a contraction of 1118 basis points in operating margin to 5.50 percent.
Operating income for the quarter was $360 million, compared with $1,292 million in the previous year period.
"We are pleased with the results for the quarter, which are attributable to our integrated business model and the continued execution of our operating improvements," said Greg Goff, chairman and chief executive officer. "Our refining operational reliability was very strong, resulting in 98% utilization. Combined with our continued growth in logistics and marketing business, this resulted in strong operating cash flows. Also, we returned $215 million to shareholders in the form of share repurchases and dividends. We are successfully delivering the improvements to operating income that we identified as part of our 2016 plan and remain committed to meeting or exceeding our target of $400 to $500 million."
Working capital increases sharplyTesoro Corporation has recorded an increase in the working capital over the last year. It stood at $2,412 million as at Sep. 30, 2016, up 33.55 percent or $606 million from $1,806 million on Sep. 30, 2015. Current ratio was at 1.90 as on Sep. 30, 2016, up from 1.63 on Sep. 30, 2015. Cash conversion cycle (CCC) has decreased to 6 days for the quarter from 24 days for the last year period. Days sales outstanding went up to 16 days for the quarter compared with 14 days for the same period last year.
Days inventory outstanding has decreased to 20 days for the quarter compared with 42 days for the previous year period. At the same time, days payable outstanding was almost stable at 31 days for the quarter, when compared with the previous year period.
Debt moves upTesoro Corporation has witnessed an increase in total debt over the last one year. It stood at $4,667 million as on Sep. 30, 2016, up 23.11 percent or $876 million from $3,791 million on Sep. 30, 2015. Tesoro Corp has witnessed an increase in long-term debt over the last one year. It stood at $4,667 million as on Sep. 30, 2016, up 23.11 percent or $876 million from $3,791 million on Sep. 30, 2015. Total debt was 25.92 percent of total assets as on Sep. 30, 2016, compared with 22.84 percent on Sep. 30, 2015. Debt to equity ratio was at 0.57 as on Sep. 30, 2016, up from 0.48 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
