AP NEWS

Andeavor earnings skyrocket in second quarter

August 6, 2018

Andeavor on Monday reported a more than tenfold increase in second-quarter profits from the previous year thanks to higher refining margins and a major acquisition that boosted revenues during a particularly strong period for refiners.

The San Antonio refiner earned $515 million or $3.41 a share in the three months that ended June 30, up more than 10 times compared to the $40 million or 31 cents a share it earned during the same period last year. The result beat Wall Street expectations. Analysts surveyed by Bloomberg expected the company would make $3.00 a share.

The company’s refining income in the second quarter was $607 million compared to $45 million in the same period of 2017. Andeavor, formerly Tesoro, acquired Western Refining in June 2017 for $4.1 billion.

Andeavor’s President and CEO Gregory Goff also announced that he expects the combination of Andeavor with Ohio-based Marathon Petroleum Corp. to be completed on Oct. 1. Both companies are holding shareholder meetings and votes on the merger on Sept. 24.

Andeavor is the fifth largest refiner in the U.S. with more than 1.1 million barrels of refining capacity. Marathon Petroleum Corp. is in the process of acquiring Andeavor for $23.3 billion in a deal that, when debt is accounted for, is valued at $35.6 billion.

Rye Druzin covers energy news in the San Antonio and Bexar County area. Read him on our free site, mySA.com, and on our subscriber site, ExpressNews.com. | rdruzin@express-news.net | Twitter: @druz_journo

AP RADIO
Update hourly