From the San Antonio Business Journal
Days after San Antonio-based refining company formerly known as Tesoro changed its name to Andeavor, the recently merged company reported a 20 percent drop in profit from the first to the second quarter.
The company officially changed to Andeavor Corp. (NYSE: ANDV) on Aug. 1. One week later, Andeavor is reporting a $40 million second quarter profit on $448 million of operating income. The company’s recent second quarter earnings are down from $50 million — or 20 percent — reported during the first quarter and down 90.4 percent from second quarter 2016, when Andeavor reported $418 million in profit.
Andeavor’s second quarter results include $124 million in expenses related to its merger-and-acquisition deal with El Paso-based Western Refining — a move that led to the newly rebranded company.
Despite its expenses in the second quarter, Andeavor CEO Greg Goff reported that the company will see growing revenue and strong contributions from the merger with Western Refining.
“We are excited about the continued transformation of Andeavor, and we achieved several significant milestones during and shortly after the quarter,” Goff said in a statement.
Goff reported an “accelerated start” to integrating Western Refining’s assets as one of several events that took place over the past two months that are expected to contribute to Andeavor’s future growth.
In a June 20 decision, the U.S. Environmental Protection Agency gave Andeavor the green light to modernize its Los Angeles Refinery. Construction for the $510 million project has already started.
Last month, the company received another permit and started construction for a $170 million project to add an isomerization unit at its refinery in Anacortes, Washington. It also bought 39 gas stations in Northern California, expanding a retail network that already included 3,000 stores.
Just two weeks ago, the company signed a storage and transportation deal with Mexico’s national oil company Petroleos Mexicanos. Days later, it announced a supply deal with Tijuana-based Professional Fuels Solutions SA de CV to sell its ARCO brand of gasoline and diesel in the Mexican states of Baja California and Sonora.
