Valero kicks off refiner results with record quarterly profit on higher margins
VLO•Valero reported record adjusted profit of $23.90 per share for the third quarter, above analysts’ expectations of $21.07, as its refining margin per barrel rose to $39.24 from $13.14 a year earlier.
1. Record quarterly profit
Valero Energy posted its highest-ever quarterly profit on Thursday, reporting adjusted earnings of $23.90 per share for the July-September quarter, its second straight quarter of record profit. Analysts had expected $21.07 per share.
2. Margins climb sharply
Valero’s refining margin per barrel of throughput was $39.24, compared with $13.14 a year earlier. The refining segment reported adjusted operating earnings of $8.8 billion, up from $1.7 billion a year earlier. The 3-2-1 crack spread, a measure of refinery margins, gained more than 150% on average during the quarter from a year earlier.
3. Industry disruptions
Disruptions caused by the Middle East conflict sent refining margins soaring in the third quarter. Valero shares rose 2.6% in premarket trading.
