Tesoro misses Q4 earnings on lower refining margins, shares -4.8%

|About: Tesoro Corporation (TSO)|By:, SA News Editor

Tesoro (TSO -4.8%) opens sharply lower after Q4 results missed estimates as a result of lower refining margins, higher stock-based pay and a loss related to the sale of a refinery.

Operating income in the refining and retail segment fell to $152M vs. $406M for the year-earlier period, driven primarily by a weaker margin environment across all operating regions.

Although TSO processed more crude oil and other feedstocks in the quarter, its gross refining margin fell to $9.45/bbl vs. $15.11 in Q4 2012.

Manufacturing costs rose to $392M vs. $239M in the year-ago quarter.

TSO suffered lower refining margins, especially in the core California region, but it's a positive that the company’s balance sheet remains strong with $1.2B in cash, Wells Fargo says.