Valero Energy Corp (NYSE:VLO) shattered analysts' expectations, posting a profit of $583 million, or 93 cents a share. Analysts at Thomson Reuters had been looking for 71 cents a share in earnings.
Last year during the same quarter, Valero took a loos of $254 million, or 36 cents a share.
Revenue also soared in the quarter, rising from $17.4 billion last year to $21.8 billion this year.
Lower-grade crude oil helped them in earnings, as the spread between higher grades and lower grades was better than expected.
Consequently, margins were close to double for the refiner over last year in the Gulf Coast region, where they have five plants in the market.
Going forward, the margins and cost remain strong, but aren't expected to be quite as good as the previous quarter, which led Valero Chief Executive Officer Bill Klesse to say the company needs the economy to grow if fuel demand is to increase.
In other words, the third quarter won't be as good as this quarter if there isn't something outside the company to increase demand.
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