Valero posts quarterly profit on higher gasoline demand

Jan 27 (Reuters) – U.S. refiner Valero Energy Corp (VLO.N) posted a quarterly profit on Thursday, compared with a year-ago loss, as demand for fuel and refined products soared due to a vaccine-fueled economic recovery.

Gasoline and distillate consumption demand in the United States improved drastically in the last quarter of 2021, compared with the year-ago period, as more people commuted to offices and took to holiday travel on easing coronavirus curbs.

Valero, the first major U.S. refiner to post quarterly results, said its fourth-quarter refining margin rose to $3 billion from $1.1 billion a year earlier.

“We remain optimistic on refining margins with low global light product inventories, strong demand, global supply tightness due to significant refining capacity rationalization, and wider sour crude oil differentials,” Chief Executive Officer Joe Gorder said in a statement.

Valero said net income attributable to stockholders stood at $1.01 billion, or $2.46 per share, for the three months ended Dec. 31, compared with a loss of $359 million, or 88 cents per share, a year earlier.