CDN NEWS | 
US NEWS 
April 30 (Reuters) – U.S. refiner Valero Energy (VLO.N) surpassed Wall Street expectations for first-quarter adjusted profit on Thursday, helped by strength in its refining segment, margins and throughput volumes.
Diesel and jet fuel margins climbed sharply in the first quarter after U.S.-Israeli attacks on Iran disrupted Middle Eastern supply, pushing finished fuel prices up faster than crude oil costs and widening profit margins for refiners.
U.S. refiners, less dependent on Middle Eastern crude, stand to benefit from global fuel shortfalls by expanding international sales from the U.S. Gulf Coast hub.
Quarterly U.S. refinery margins, measured by the 3-2-1 crack spread , were up about 73% on an average in the first quarter from a year earlier.
U.S. Gulf Coast refiners are reaping their strongest margins in years, with disruptions to Middle Eastern oil flows from the Iran war driving demand for U.S. fuel exports.
Valero said it is progressing with its FCC Unit optimization project at the St. Charles Refinery that will enable the refinery to increase the yield of high value products.
The project is expected to cost $230 million and begin operations in the third quarter.
The company’s refining segment reported operating earnings of $1.8 billion, compared with a loss of $530 million a year earlier.
Its refining margin per barrel of throughput was $14.90 in the quarter, compared with $9.78 a year earlier, while average throughput volumes rose 3.6% to 2.9 million barrels per day in the quarter.
Valero posted renewable diesel operating income at $139 million, compared with a loss of $141 million last year.
At the ethanol segment, operating income rose to $90 million from $20 million a year earlier.
Rival Phillips 66 (PSX.N) posted a surprise first quarter profit on Wednesday, helped by higher refining margins and capacity utilization.
San Antonio, Texas-based Valero reported an adjusted profit of $4.22 per share for the three months ended March 31, compared with analysts’ expectations of $3.16 per share, according to data compiled by LSEG.
Reporting by Pooja Menon in Bengaluru; Editing by Devika Syamnath
Share This:
