NEW YORK, NY--(Marketwire - Mar 15, 2013) - Shares of oil refiners have slid this past week on concerns that rising renewable fuel credits would begin to pressure margins. The Environmental Protection Agency has propped refineries raising the U.S. ethanol mandate to over 14 billion gallons, compared with 13.2 billion gallons in 2012. Research Driven Investing examines investing opportunities in the Oil & Gas Refining & Marketing Industry and provides equity research on Tesoro Corporation (
"There is a potential real stinker of an issue developing for US refiners on meeting obligations related to the US government's renewable fuels standard (RFS) that could materially impact earnings for many of the companies. The price of renewable fuel credits, known as Renewable Identification Number (RINs), has skyrocketed from under US$0.01/gal for ethanol in late 2012 to over US$1.00/gal this week, significantly increasing the cost of RFS compliance for the US refiners so far in 2013," Macquarie wrote in a recent note to investors.
Research Driven Investing releases regular market updates on the Oil & Gas Refining & Marketing Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.RDInvesting.com and get exclusive access to our numerous stock reports and industry newsletters.
Tesoro, through its subsidiaries, operates seven refineries in the western United States with a combined capacity of approximately 675,000 barrels per day. The company's Board of Directors has approved a 33 percent increase to the company's quarterly dividend from $0.15 a share to $0.20 a share. For the fourth quarter of 2012 Tesoro reported a net income of $27 million, compared to a net loss of $124 million a year ago.
Western Refining owns and operates two refineries with a total crude oil throughput capacity of approximately 151,000 barrels per day producing primarily high-value light products such as gasoline, diesel, and jet fuel. The company reported a net income, excluding special items, of $552.3 million for the full year 2012, compared to a net income of $330.4 million a year ago.
Research Driven Investing has not been compensated by any of the above-mentioned publicly traded companies. Research Driven Investing is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: