Valero kicks off US refiners’ earnings with quarterly profit beat

Refiners have been riding a wave of favorable pricing and demand as pandemic-era closings boosted margins.

San Antonio, Texas-based Valero said its refining margins for the January-March quarter rose to $5.9 billion from $3.2 billion a year earlier.

Higher demand for products have also helped, with jet fuel recently surging higher after China re-opened its economy following long COVID-induced lockdowns.

Valero, the second-largest U.S. refiner by capacity, said total refinery throughput volume averaged 2.9 million barrels per day (bpd) in the quarter, marginally higher than 2.8 million bpd a year earlier.

U.S. oil refiners dialed back operating runs as they catch up on maintenance activities during the quarter after sky-high utilization rates last year to keep up with demand recovery.

They had scaled back maintenance work in 2020 and 2021 to reduce the risk of contractors bringing in the COVID-19 virus.

“Our refineries operated at a 93 percent capacity utilization rate in the first quarter, despite planned maintenance at several of our facilities,” said Joe Gorder, Valero’s chief executive officer.

The company reported adjusted net income of $8.27 per share for the three months ended March 31, compared with analysts’ average estimate of $7.23 per share.