Tesoro Corp. the San Antonio-based company refiner, reported higher third-quarter income as refinery margins improved, including those at its Hawai'i operation.

The refiner reported net income jumped to $259 million, or $1.86 a share. That was more than five times the profit in the third quarter a year earlier, when it had a profit of $47 million, or 34 cents a share.

Tesoro said it improved upon its crude oil purchasing and product pricing, though it said production at its seven refineries fell by 32,000 barrels per day because of lower demand.

It said gross margins of $16.69 a barrel during the quarter were 85 percent better than a year earlier because of its profit improvement initiatives and the declining crude oil price.

Revenue surged to $8.7 billion from $5.9 billion a year earlier, reflecting higher gasoline and petroleum product prices.

The report shows Tesoro made progress increasing gross refining margins in Hawai'i, though the Kapolei refinery's numbers remain below that of other company operations.

It also shows the local refinery, the largest of two in the state, had lower production and that Tesoro has been successful in modifying the refinery to process more less costly heavy crude oil.

The report said the Hawai'i refinery: