Tesoro Corp (TSO), engaged in refining and marketing petroleum products, has posted an 1.32 percent decrease in profit for the quarter ended Jun. 30, 2014. The company earned $224 million or $1.70 a share in the second-quarter compared with $227 million or $1.64 a share a year ago. Analysts on average had predicted net income of $1.92 a share.

Revenue during the second-quarter grew 24.81 percent to $11,104 million from $8,897 million in the last year period.

Gross margin expanded by 4 basis points over the previous year period to 11.14 percent. The company disclosed operating income of $410 million, compared with operating income of $364 million in the last year period. Operating margin for the quarter dropped 40 basis points to 3.69 percent.

''Our results from continuing operations for the quarter are improved meaningfully over last year reflecting the addition of the Los Angeles refining, marketing and logistics assets and delivery of about $200 million of EBITDA improvements through a combination of synergy capture and other business improvements,'' said Greg Goff, president and CEO.

''Our year-over-year performance for the second quarter clearly demonstrates the value we're delivering through our strategic initiatives and our commitment to delivering on our California synergy and other business improvement objectives.  This is especially important when you consider that the Tesoro Index is down over $2.00 per barrel and our stock based compensation expense is up $0.14 per share from a year ago.''

Shares of the company declined $0.59 or 0.98 percent to settle at $59.39 on Wednesday.