San Antonio, Texas-based oil refiner Tesoro (TSO) is down 74 cents, or 5.7%, at $12.24 in after-hours trading after the company this afternoon reported Q4 sales rose 10% to $4.67 billion, just shy of the $4.71 billion average estimate, a deeper-than-expected net loss, and said it would suspend its quarterly dividend “for the foreseeable future.”
The non-GAAP operating loss per share in the quarter of 99 cents, excluding cost of goodwill impairment, was worse than the 92 cents analysts had expected.
The company said refining margins fell by more than 50% to $5.37 per barrel from $12.47 a year earlier. The cut in the dividend, it said, would be used to make several of its “quick hit” investments that the company has outlined in past.
These investments, most of them of $1 million or less per project, are ways the company’s found to reducing operating costs or lower feedstock costs. Despite having over $1 billion in cash and revolving credit available, management said cutting the dividend would allow it to continue to invest in the quick-hit programs. |
