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.
Showing posts with label Oil Refinery. Show all posts
Showing posts with label Oil Refinery. Show all posts
Tuesday, July 27, 2010
Wednesday, May 26, 2010
BP (NYSE:BP) LA Refinery Closed for Unscheduled Maintenance
A major BP (NYSE:BP) (LON:BP) refinery was closed in the area of Los Angeles today, with the oil company shutting it down for unscheduled maintenance.
The Carson refinery, which produces as high as 6.3 millio gallons for the three-state area of California, Nevada and Arizona, is an fluid catalytic cracking unit, or FCCU, providing gasoline grades required in the area.
A Planned Flaring Event Notification was filed by BP to state regulators in California in reference to an unidentified breakdown at the refinery.
Someone familiar with the matter said the refinery will probably be out of service for 10 days.
Carson has the ability to process as high as 265,000 barrels of oil a day.
We'll probably hear a lot of these types of actions by BP going forward, as they can't afford any type of additional accident in light of the current crisis in the Gulf, and so will probably be cautious to a fault for a long time into the future.
The Carson refinery, which produces as high as 6.3 millio gallons for the three-state area of California, Nevada and Arizona, is an fluid catalytic cracking unit, or FCCU, providing gasoline grades required in the area.
A Planned Flaring Event Notification was filed by BP to state regulators in California in reference to an unidentified breakdown at the refinery.
Someone familiar with the matter said the refinery will probably be out of service for 10 days.
Carson has the ability to process as high as 265,000 barrels of oil a day.
We'll probably hear a lot of these types of actions by BP going forward, as they can't afford any type of additional accident in light of the current crisis in the Gulf, and so will probably be cautious to a fault for a long time into the future.
Monday, April 19, 2010
Imperial Oil (TSE:IMO): Low Margins Expected
Margins at Imperial Oil (TSE:IMO) are expected to push down earnings, as the company prepares to release its latest quarterly report on April 29.
Those oil companies with strong investment in the downstream are expected to have low margins at their refining businesses, which is sure to result in lower earnings.
Imperial Oil, whose largest shareholder is ExxonMobil (NYSE:XOM), and which has controlling interest in the company, has also said they have started their maintanance at the Strathcona refinery in Edmonton, Alberta, which shouldn't cause any supply problems with the usual 187,000 barrels a day processed there.
The shutdown is expected to last into May.
Those oil companies with strong investment in the downstream are expected to have low margins at their refining businesses, which is sure to result in lower earnings.
Imperial Oil, whose largest shareholder is ExxonMobil (NYSE:XOM), and which has controlling interest in the company, has also said they have started their maintanance at the Strathcona refinery in Edmonton, Alberta, which shouldn't cause any supply problems with the usual 187,000 barrels a day processed there.
The shutdown is expected to last into May.
Saturday, April 10, 2010
Chevron (NYSE:CVX) Refining Profits
Chevron Turning Profit at Refinery for Next Quarter
Chevron (NYSE:CVX) recently stated their refinery business has turned around and should turn a profit in the next quarter after a loss in the fourth quarter.
Margins in the refinery business of Chevron are given as the reason for the expected turnaround for the first quarter.
Analysts are looking for profit of $1.66 a share for the next quarter for Chevron, even with the $150 million charge from strong cost cutting.
Chevron (NYSE:CVX) recently stated their refinery business has turned around and should turn a profit in the next quarter after a loss in the fourth quarter.
Margins in the refinery business of Chevron are given as the reason for the expected turnaround for the first quarter.
Analysts are looking for profit of $1.66 a share for the next quarter for Chevron, even with the $150 million charge from strong cost cutting.
Monday, April 5, 2010
Tesoro (NYSE:TSO) Downgraded on Refinery Tragedy
Tesoro Downgraded by Analyst
With no way of knowing the ultimate fallout from the explosion at its Anacortes, Wash., refinery which killed five people, Tesoro (NYSE:TSO) was downgraded by Caris & Co. analyst Ann Kohler, citing the uncertainty surrounding the company until the cause and financial consequences of the event are figured out.
Kohler lowered her rating of the stock of Tesoro from "2/above average" to "4/below average." She also dropped her target price from $15 to $12.50. The last trade as of this writing was for $13.61.
With Tesoro already being fined for 17 serious safety violations in November 2009, which they were originally fined $85,700 by Washington state regulators, this could really cost them if they are found to be at fault in the matter.
With no way of knowing the ultimate fallout from the explosion at its Anacortes, Wash., refinery which killed five people, Tesoro (NYSE:TSO) was downgraded by Caris & Co. analyst Ann Kohler, citing the uncertainty surrounding the company until the cause and financial consequences of the event are figured out.
Kohler lowered her rating of the stock of Tesoro from "2/above average" to "4/below average." She also dropped her target price from $15 to $12.50. The last trade as of this writing was for $13.61.
With Tesoro already being fined for 17 serious safety violations in November 2009, which they were originally fined $85,700 by Washington state regulators, this could really cost them if they are found to be at fault in the matter.
Friday, April 2, 2010
Tesoro (NYSE: TSO) Washington Refinery Explosion Kills 4, Wounds 3
Washington Refinery Explosion
An explosion and fire at a Washington state oil refinery [Tesoro (NYSE: TSO)] shook homes and shot flames into the night sky early Friday, killing four people and critically injuring three others.
The fire struck the Tesoro Corp. refinery in Anacortes, about 70 miles north of Seattle on Puget Sound, at about 12:30 a.m., the company said. The blaze occurred while maintenance work was being performed and was extinguished in about 90 minutes.
Three employees are hospitalized with major burns over the majority of their bodies, including a 36-year-old woman and two men, 34 and 41, said Susan Hanson, a spokeswoman for Harborview Medical Center in Seattle. A 29-year-old woman died of her burns at the hospital. The other three killed were men, according to the Skagit County coroner.
The blast was the biggest fatal refinery accident since a 2005 explosion at a BP American refinery in Texas killed 15 people and injured another 170, authorities said. It comes after Tesoro was fined $85,700 a year ago for 17 serious safety and health violations.
Rest of story:
http://www.breitbart.com/article.php?id=D9ER413O0&show_article=1
An explosion and fire at a Washington state oil refinery [Tesoro (NYSE: TSO)] shook homes and shot flames into the night sky early Friday, killing four people and critically injuring three others.
The fire struck the Tesoro Corp. refinery in Anacortes, about 70 miles north of Seattle on Puget Sound, at about 12:30 a.m., the company said. The blaze occurred while maintenance work was being performed and was extinguished in about 90 minutes.
Three employees are hospitalized with major burns over the majority of their bodies, including a 36-year-old woman and two men, 34 and 41, said Susan Hanson, a spokeswoman for Harborview Medical Center in Seattle. A 29-year-old woman died of her burns at the hospital. The other three killed were men, according to the Skagit County coroner.
The blast was the biggest fatal refinery accident since a 2005 explosion at a BP American refinery in Texas killed 15 people and injured another 170, authorities said. It comes after Tesoro was fined $85,700 a year ago for 17 serious safety and health violations.
Rest of story:
http://www.breitbart.com/article.php?id=D9ER413O0&show_article=1
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