VLO - Valero 1Q Profit Increases 35 Percent
Thursday April 26, 9:05 am ET
Valero 1st-Quarter Net Income Climbs 35 Percent on Strength in Margins
SAN ANTONIO (AP) -- Valero Energy Corp., the nation's largest independent oil refiner, said Thursday its first-quarter profit jumped 35 percent on the back of stronger gasoline and distillate margins.
Net income rose to a first-quarter record $1.14 billion, or $1.86 per share, from $848 million, or $1.32 per share. Analysts were expecting earnings per share of $1.81, according to Thomson Financial. Average shares outstanding were reduced to 615 million from 644 million a year earlier.
Quarterly revenue declined 5.9 percent to $19.7 billion from $20.93 billion, Valero said. Analysts polled by Thomson were looking for $22.96 billion in revenues.
"We're off to a great start in 2007, as Valero earned the highest first-quarter profits in company history," said Bill Klesse, Valero's chairman and chief executive. "In addition to the strong margin environment, we benefited from the January commissioning of the expanded crude unit at the Port Arthur refinery, which increased overall throughput capacity at that refinery by 30,000 barrels per day to 325,000 barrels per day of sour crude oil."
Throughput margin rose to $12.06 per barrel in the most recent quarter from $10.11 a year earlier. Valero said margins are being supported by strong demand and industrywide factors that have limited supply, including more stringent product specifications, more complicated refining operations, logistics constraints, and tightness in labor and equipment for maintenance.
First-quarter operating income grew to $1.8 billion from $1.3 billion last year.
