Valero Energy Corporation $VLO based in San Antonio, Texas reported better than expected third-quarter results Thursday before the open. Valero higher throughput margin due to 92% throughput capacity utilization despite Harvey supported Valero Energy’s strong results.
Valero Energy Corporation $VLO based in San Antonio, Texas reported better than expected third-quarter results Thursday before the open. Valero sustained higher margin due to 92% throughput capacity utilization despite Hurricane Harvey supported Valero Energy’s strong results. Valero is the largest independent refiner and marketer of petroleum products in the U.S., dominating the central and southwestern U.S. and eastern Canada with refined petroleum products.
Earnings: EPS 1.91 beats expected 1.83 Thomson Reuters. Operating revenues of $23,562 million versus $19,649 million exp $19.03 billion — Thomson Reuters
Reaction: Valero Energy Corporation NYSE: VLO Pre-market: $78.50 +.82 + 1.06%
- Hurricane Harvey disrupted operations at five of Valero’s refineries during quarter
- Valero Energy Corp qtrly refinery throughput capacity utilization was 92 percent
- Valero Energy Corp qtrly throughput volumes averaged 2.9 million barrels per day
Cap Ex
Valero Energy Corp continues to target $2.7 billion of total capital investments this year
VLO is in a good position to take advantage of discounts on Gulf Coast crude oil, compared with more expensive Brent crude. Investors will look to see if the asphalt terminal leaks at one of Valero’s Corpus Christi refineries affects Valero’s results.
Refining
Ethanol
VLP
Last year Valero had to deal with the possible leaking of toxic materials from an asphalt terminal it leases to Ergon Asphalt & Emulsions at one of Valero’s Corpus Christi refineries in the fourth quarter. Corpus Christi banned the drinking and use of city water to hundreds of thousands of residents for up to three days and spawned more than a dozen civil lawsuits against Valero by individuals and businesses. It is unclear how the incident may affect Valero’s future results.
Source: Valero Energy Corporation
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